State Grid International Development loans $5,567,651 to State Grid Brazil Holding S.A.

On December 20, 2013 State Grid International Development Ltd (SGID) provided a $5,567,651 loan to State Grid Brazil Holding S.A for its sub-company Serra Paracatu Transmissora de Energia S.A. (SPTE). According to page 6 of the report released by State Grid Corporation of China, the loan has an interest rate of LIBOR + 0.65% (Dec. 2013 LIBOR 6 month average + 0.65= 0.996%) and a maturity on December 20, 2014 with payments of principal and interest on this date. 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

Resource "RELATÓRIO DA ADMINISTRAÇÃO" only used to reference company abbreviation (SPTE) with company name (Serra Paracatu Transmissora de Energia S.A.).

Number of official sources

9

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9