SAO PAULO (Reuters) -Volkswagen said on Friday it has secured 2.3 billion reais ($425.62 million) in credit lines from Brazil's state development bank BNDES to boost the development of hybrid vehicles and expand exports from its Brazilian operations.

The company said that the funds will be used to support its plan to offer hybrid versions of all new vehicles developed and manufactured in South America starting in 2026.

"We will offer hybrids in every possible category: mild hybrids, hybrids, and plug-in hybrids," said Ciro Possobom, Volkswagen's head in Brazil. The automaker expects to invest 20 billion reais in South America by 2028.

($1 = 5.4039 reais)