China Development Bank loans $13,524,658 to State Grid Brazil Holding S.A.

On December 19, 2014, China Development Bank provided a $13,524,658 loan to State Grid Brazil Holding S.A. for its subsidiary Itumbiara Transmissora de Energia S.A. (ITE). SGID is the subsidiary of State Grid Corporation of China (SGCC); it is therefore a state-owned Chinese company and operates in the areas of construction, engineering, and management of power grid projects. According to page 5 of the report released by State Grid Corporation of China, the loan has an interest rate of LIBOR + 2.65% a.a. (Dec. 2014 6 month LIBOR average+2.65 = 2.993%) and is due on June 20, 2015 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 (ITE) with company name (Itumbiara Transmissora de Energia S.A.).

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9

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9