Narrative
Full Description
Project narrative
In September 2012, China Development Bank provided a $175,600,000 loan to State Grid Brazil Holding S.A. to support its operations in Brazil. The loan has an interest rate of Libor + 2.85% pa. (Sep. 2012 6 month average LIBOR + 2.85 = 3.522) and a maturity of 11 years with payments of principal and semi-annual interest. On 17 November 2014, as guarantor, SGID settled, on behalf of the Company, the entire balance debtor in a total amount of $153,636,799. By way of background, in December 2010, State Grid Corporation of China acquired 100% stakes in seven Brazilian transmission concession companies through its wholly owned Brazilian subsidiary, State Grid Brazil Holding S.A. (“SGBH”), each with a secured 30-year operating right. The assets in these companies at the time of acquisition included transmission lines with a total length of 3,176 km, six 500 kV substations, two 500 kV switching stations and one 345 kV substation. SGBH assumed responsibility for operating these 7 transmission companies. Then, in May 2012, SGBH entered into an agreement to acquire another seven Brazilian transmission concession companies, each with a secured 30-year operating right. The seven companies’ assets at the time of acquisition included transmission lines with a total length of 2,792 km, 11 self-owned substations and 12 substations jointly controlled with others. These activities and other electricity transmission projects — including the 2,518 km Belo Monte ±800 kV UHVDC Transmission Project (or 巴西美丽山水电特高压直流送出二期项 or ±800千伏特高压直流输电工程) — have been supported by China Development through a series of loans.