CDB loans $3,321,682 to State Grid Brazil Holding S.A. (ETIM) in June 2014

On June 20, 2014, China Development Bank provided a $3,321,682 loan to State Grid Brazil Holding S.A. for its subsidiary Expansion Transmissão Itumbiara Marimbondo S.A.(ETIM). SGID, the guarantor of the loan, is a state-owned Chinese company that handles investment, construction, and operations of power grids. According to page 5 of the report released by State Grid Corporation of China, the loan has an interest rate of LIBOR + 0.65% (June 2014 6 month LIBOR average 0.324 + 0.65 = 0.974%) and maturity on December 20, 2014 with principal and interest payments on this date. State Grid International Development Co. Ltd (SGID) is named as guarantor and settled the amount 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. On October 25, 2019, Chinese President Xi Jinping and Brazilian President Jair Bolsonaro held a meeting and signed an operation permit for the second phase of Brazil's Meishan Hydropower UHVDC transmission project. This operation permit demonstrates that Chinese loans have continued to promote energy infrastructure development in Brazil.

Additional details

Resource "RELATÓRIO DA ADMINISTRAÇÃO" only used to reference company abbreviation (ETIM) with company name (Expansion Transmissão Itumbiara Marimbondo S.A.)

Number of official sources

11

Number of total sources

11