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Overview

Bank of China provides a €800 million EUR loan to EDP – Energias de Portugal for general corporate purposes

Commitments (Constant USD, 2023)$1,114,044,651
Commitment Year•2012Country of Activity•PortugalDirect Recipient Country of Incorporation•Multiple JurisdictionsOverseas Jurisdiction•LuxembourgSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 22, 2012
Last repayment (originally scheduled)
Oct 22, 2015

Geospatial footprint

Map overview

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This loan for general corporate purpose was provided to EDP – Energias de Portugal, S.A., which is headquartered at Avenida 24 de julho, 12 1249-300 Lisboa, and EDP Finance B.V., which is headquartered at Herikerbergweg 238, 1101 CM Amsterdam, The Netherlands. More detailed locational information can be found at https://www.openstreetmap.org/relation/7555178 and https://www.openstreetmap.org/node/2862918095.

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 Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • EDP – Energias de Portugal, S.A.
  • EDP Finance B.V.

Loan desecription

Bank of China provides a €800 million EUR loan to EDP – Energias de Portugal for general corporate purposes

Interest rate (t₀)•3.83049%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•3 years

Narrative

Full Description

Project narrative

On October 22, 2012, the Luxembourg Branch of the Bank of China (BOC) signed a €800,000,000 million EUR ($1.05 billion USD) senior Multicurrency Term Facility agreement with EDP – Energias de Portugal, S.A. — a Portuguese electricity utilities company headquartered in Lisbon — and EDP Finance B.V. — a Netherlands-incorporated wholly-owned subsidiary of EDP — for general corporate purposes. This loan carried a maturity period of three years and an interest rate based on 3-month LIBOR plus a margin of 350 basis points (bps) and a final maturity date in October 2015. This loan was unsecured. The proceeds were to be used by the borrowers for general corporate purposes and supporting its liquidity position {{see ID#203252 and pdf pg.5 of ID#203299}. EDP drew down this entire loan in U.S. dollars, $1.05 billion USD. In 2014, EDP entered into several bilateral loan agreements to prepay portions of the loan; in 2014, EDP prepaid $750 million USD of the outstanding amount. On January 22, 2015, EDP repaid the remaining $300 million USD outstanding under the loan {{see pdf pg.5 of ID#203299}.

Staff comments

1. EDP – Energias de Portugal, S.A. is a private company that generates, supplies and distributes electricity and the supply of gas in Portugal and Spain. 2. The average 3-month USD LIBOR for October 2012 was 0.33049%. Therefore, the interest rate has been coded as 0.33049% + 3.50% (350 bps) = 3.83049%. 3. China Daily and Xinhua report a signing ceremony for this loan on December 20, 2012, while EDP's official reports and press releases are unanimous on the loan being signed on October 22, 2012. The December 2012 ceremony may have been a mere formality.