Narrative
Full Description
Project narrative
On September 4, 2012, China Development Bank provided a $34,780,000 loan to State Grid Brazil Holding S.A. to support its operations in Brazil. The loan has an interest rate of Libor + 2.55% (Sep. 2012 6 month average LIBOR + 2.55 = 3.222%) and maturity of six years with semiannual payments of principal and interest. On December 23, 2014, SGID, as guarantor, settled, on behalf of the Company, the entire outstanding balance in a total amount of $23,191,304. 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.