China Development Bank provides $53,400,000 loan to State Grid Brazil Holding S.A.

Project narrative

In September 2012, China Development Bank provided a $53,400,000 loan to State Grid Brazil Holding S.A. for its subsidiary Ribeirão Preto Transmissora de Energia S.A. (RPTE). According to page 6 of the report released by State Grid Corporation of China, the loan originated from an agreement made on July 20, 2012. It has an interest rate of LIBOR + 2.85% (Sep. 2012 6 month average LIBOR + 2.85 = 3.522) and a maturity of 12 years with payments of principal and semiannual interest. On November 17, 2014, State Grid International Development Co. Ltd (SGID) as guarantor settled the entire outstanding balance in a total amount of $47,337,800 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.