China Development Bank lends $135,750,000 to State Grid Brazil Holding S.A. for its subsidiary Itumbiara Transmissora de Energia S.A.

On December 23, 2014, China Development Bank issued a $135,750,000 loan to State Grid Brazil Holding S.A. for its subsidiary Itumbiara Transmissora de Energia S.A. (ITE). The loan carried the following borrowing terms: an an interest rate of LIBOR plus 2.65% and a 6-year maturity (final maturity date: September 24, 2020). The borrower was responsible for making interest payments in 11 semi-annual installments from June 20, 2015 to September 24, 2020. 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

1. SGID is the subsidiary of State Grid Corporation of China; it is therefore a state-owned Chinese company and operates in the areas of construction, engineering, and management of power grid projects. 2. AidData has estimated the all-in interest rate (2.993%) by adding 2.6% to average 6 month LIBOR average in December 2014.

Number of official sources

9

Number of total sources

9