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Overview

China Development Bank provides $43,260,012 loan to State Grid Brazil Holding S.A.

Commitments (Constant USD, 2023)$44,365,443
Commitment Year•2014Country of Activity•BrazilDirect Recipient Country of Incorporation•BrazilSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 17, 2014
Last repayment (originally scheduled)
Dec 30, 2023

Geospatial footprint

Map overview

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The Belo Monte ±800 kV UHVDC transmission line (also known as the Xingu-Estreito UHVDC transmission line) is a 800 kV high-voltage direct current transmission line in Brazil between the Xingu substation at the city of Anapu in the Pará state, 17 km from the Belo Monte Dam, and the Estreito substation at the city of Ibiraci in the Minas Gerais state. Some sources identify it as being 2076 km in length and others identify it as being 2518 km in length. More detailed locational information can be found at https://en.wikipedia.org/wiki/Xingu-Estreito_HVDC_transmission_line and https://www.google.com/maps/place/UHBM/@-3.128871,-51.7811079,17z/data=!3m1!4b1!4m5!3m4!1s0x9293c3f9d7d58bd5:0xe83006090c1f1975!8m2!3d-3.1288764!4d-51.7789192 and https://www.google.com/maps/place/Subesta%C3%A7%C3%A3o+Estreito+-+Esta%C3%A7%C3%A3o+Conversora+Sistema+Belo+Monte/@-20.2591277,-47.1807065,17z/data=!4m9!1m2!2m1!1zU3ViZXN0YcOnw6NvIEVzdHJlaXRv!3m5!1s0x94b0947ce942f5b7:0x9b7209659efdf380!8m2!3d-20.2591277!4d-47.178518!15sChVTdWJlc3Rhw6fDo28gRXN0cmVpdG-SARVlbGVjdHJpY2FsX3N1YnN0YXRpb24 and https://www.openstreetmap.org/way/515552863#map=16/-3.1066/-51.6889 and https://www.openstreetmap.org/way/516496552#map=16/-20.2593/-47.1778 and https://www.openstreetmap.org/way/700752757 and https://www.openstreetmap.org/way/700752758#map=6/-11.253/-48.048 and https://www.openstreetmap.org/way/673142033#map=6/-13.065/-47.730

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned companies

  • State Grid Brazil Holding S.A. (SGBH)

Loan desecription

China Development Bank loans $43,260,012 to State Grid Brazil Holding S.A.

Grant element•23.8098%Interest rate (t₀)•3.17565%Interest type•Variable Interest RateMaturity•10 years

Narrative

Full Description

Project narrative

On November 17, 2014, China Development contracted a $43,260,012 loan to State Grid Brazil Holding S.A. for its subsidiary Serra Paracatu Transmissora de Energia S.A. (SPTE). The loan has an interest rate of LIBOR + 2.85% (Nov. 2014 6 month LIBOR average + 2.85 = 3.177%). Payment of principal and interest will be in 21 semiannual installments, beginning in December 2014 and with final maturity on September 6, 2024. 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.