Overview

China Development Bank (CDB) provides 400 million EUR term loan to Redes Energéticas Nacionais (REN) for debt refinancing

Commitments (Constant USD, 2023)$549,138,384

Commitment Year•2013Country of Activity•PortugalDirect Recipient Country of Incorporation•PortugalSector•EnergyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Apr 30, 2013

Last repayment (originally scheduled): Apr 28, 2021

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

China Development Bank (CDB)

Receiving agencies

Private Sector

Redes Energéticas Nacionais, SGPS, S.A. (REN)

Loan description

China Development Bank (CDB) provides 400 million EUR term loan to Redes Energéticas Nacionais (REN) for debt refinancing

Interest rate (t₀)•5.015%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•8 years

Narrative

Full Description

Project narrative

On October 11, 2012 China Development Bank (CDB) closed on a 800 million EUR funding deal with Redes Energéticas Nacionais, SGPS, S.A. (REN)—a Portuguese energy utility company. The loan consisted of two tranches worth 400 million EUR each. On April 30, 2013, REN signed a finance contract specifying the terms of the loan.The first tranche was to be used exclusively for debt refinancing and carried a maturity of 8 years and an annual spread of 4.7% on the 6-month Euribor. (captured via Record ID#101778) The second tranche was to be used exclusively for debt refinancing and carried a maturity of 8 years and an annual spread of 4.7% on the 6-month Euribor. (captured via Record ID#101779).

Staff comments

1. AidData calculated the all-in interest rate as follows: 0.332% (6-month Euribor in April 2013) + 4.7% (given margin) = 5.032%.