China Development Bank loans $13,712,039 to State Grid Brazil Holding S.A. in June 2014
Commitment amount
$ 15180532.989787217
Adjusted commitment amount
$ 15180532.99
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Brazil
Sector
Energy (Code: 230)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Geography
Description
On June 20, 2014, China Development Bank provided a $13,712,039 loan to State Grid Brazil Holding S.A. for its subsidiary Itumbiara Transmissora de Energia S.A. (ITE). According to page 5 of the report released by State Grid Corporation of China, the loan has an interest rate of LIBOR + 0.65% pa. (June 2014 6 month LIBOR average + 0.65 = 0.974%) maturity in December 20, 2014 with payments of principal and interest on this date. It is unclear what this loan will be used for. On December 19, 2014, State Grid International Development Co. Ltd (SGID), as guarantor, settled the principal and interest installments of the loan in the amount of $13,524,658 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
Resource "RELATÓRIO DA ADMINISTRAÇÃO" only used to reference company abbreviation (ITE) with company name ( Itumbiara Transmissora de Energia S.A.).
Number of official sources
9
Number of total sources
9
Details
Cofinanced
No
Direct receiving agencies [Type]
State Grid Brazil Holding S.A. [State-owned Company]
Guarantee provider [Type]
State Grid International Development Co., Ltd. [State-owned Company]
Loan Details
Interest rate
0.974%