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Overview

China Development Bank provides $135,750,000 loan to State Grid Brazil Holding S.A. for its subsidiary Itumbiara Transmissora de Energia S.A. (Linked to Record ID#106230)

Commitments (Constant USD, 2023)$139,218,844
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
Dec 23, 2014
Start (planned)
Jun 20, 2015
End (planned)
Sep 24, 2020
Last repayment (originally scheduled)
Dec 21, 2020

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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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 description

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

Grant element•16.3767%Interest rate (t₀)•3.0074%Interest type•Variable Interest RateMaturity•6 years

Narrative

Full Description

Project narrative

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. In 2015, the company made payments as stipulated. However, in June 2016, due to cash problems, the company failed to make the principal payment and only paid the interest. Hence, the company and CDB entered into a debt rescheduling agreement in which they agreed to postpone the principal payment to June 2017 (Record ID#106230) In December 2016, the company made repayments to CDB as stipulated. Between 2017 and 2019, the company paid the principal and interest according to the contract. In 2020, the Company only made interest payments to CDB due to the pandemic: the Company had the option to skip the payment when facing an emergency as stipulated in the agreement. On July 15, 2021, the loan was fully paid off by 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.

Staff comments

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.