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Overview

China Development Bank reschedules $70,800,011 loan to State Grid International Corporation — via 3.25 year maturity extension— in 2017 (Linked to Record ID#60076 and #106209)

Commitment Year•2017Country of Activity•BrazilDirect Recipient Country of Incorporation•BrazilSector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 31, 2017
Start (planned)
Dec 1, 2014
Last repayment (originally scheduled)
Dec 31, 2028

Stakeholders

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

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned companies

  • State Grid Brazil Holding S.A. (SGBH)

Loan description

China Development Bank reschedules $70,800,011 loan to State Grid International Corporation — via 3.25 year maturity extension— in 2017 (Linked to Record ID#60076 and #106209)

Grant element•19.6482%Interest rate (t₀)•4.687%Interest type•Variable Interest RateMaturity•11 years

Narrative

Full Description

Project narrative

On November 17, 2014, China Development Bank issued a $70,800,011 loan to State Grid Brazil Holding S.A. for its subsidiary Poços de Caldas Transmissora de Energia S.A. (PCTE). The loan has an interest rate of LIBOR + 2.85% (Nov. 2014 6 month LIBOR average + 2.85 = 3.177%). Payment of principal and interest will be in 23 semiannual installments (June and December each year) beginning on December 2014 and with final maturity on September 4, 2025. In 2015, the company made payments as stipulated. However, in June 2016, due to cash problems, the company failed to make the principal payment and only paid the interest. Hence, the company and CDB entered into a debt rescheduling agreement in which they agreed to postpone the principal payment to June 2017 (Record ID#106208) In December 2016, the company made repayments to CDB as stipulated. In 2017, similarly, due to cash problems, the company failed to make the principal payment and only paid the interest. The Company and CDB entered into another debt rescheduling agreement in which they extended the maturity from September 2025 to December 20, 2028 (Record ID#106029). The company made regular payments in December 2017, 2018 and 2019. In 2020, the Company only made interest payments to CDB due to the pandemic: the Company had the option to skip the payment when facing an emergency as stipulated in the agreement. In July 2021, the Company made a payment to CDB. However, on September 30, 2021, State Grid International Development signed a debt assumption agreement with State Grid Brazil Holding, the parent company, in which SGBH agreed to assume the remaining debt of R$ 213,328,009, hence eliminating the debt from SGID.