China Development Bank loans $79,000,000 to State Grid Brazil Holding S.A in September 2012

On September 5, 2012, China Development Bank issued a $79,000,000 (~161,871,000 Brazilian reals) loan to State Grid Brazil Holding S.A. for its subsidiary Poços de Caldas Transmissora de Energia S.A. (PCTE). The loan carried an interest rate of LIBOR plus a 2.85% margin and a maturity of 13 years. The borrower was expect to repay the loan via semi-annual repayments On November 17, 2014, as guarantor, State Grid International Development Ltd (SGID) settled the entire outstanding balance in a total amount of $70,800,011 on behalf of the company. 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.

Additional details

1. AidData has estimated the all-in interest rate (3.522%) by adding 2.85% to average 6-month LIBOR in September 2012 (0.672%).

Number of official sources

9

Number of total sources

9