ICBC contributes $17.5 million to a $117.5 million syndicated loan to COELBA to expand its power distribution network (Linked to Project ID#98847)

On August 1, 2017, a syndicate of five banks — including the Industrial and Commercial Bank of China (ICBC) — entered into two loan agreements worth a combined $235.00 million USD with two Brazilian transmission companies, Companhia Energética de Pernambuco S.A. (CELPE), the distributor for the State of Pernambuco, and Companhia de Eletricidade do Estado da Bahia S.A. (COELBA; also known as Neoenergia Coelba), the distributor for the State of Bahia, — both majority-owned by Neoenergia S.A., a company publicly traded on the São Paulo Stock Exchange that is majority-owned by Spanish group Iberdrola — to expand their power distribution networks. Each term loan carried: a face value of $117.50 million USD, a maturity period of three years, and a final maturity date of August 1, 2020. The $117.50 million USD loan to CELPE carried an interest rate of LIBOR plus a margin of 1.90% while the $117.50 million loan USD loan to COELBA carried an interest rate of 3-month LIBOR plus a margin of 1.80%. Neoenergia issued a guarantee for each of the loans. ICBC contributed $17.50 million USD to each $117.50 million USD loan to CELPE and COELBA. Project ID#98847 captures the CELPE loan. Project ID#98848 captures the COELBA loan. In addition to ICBC, the following lenders contributed the respective amounts to each $117.50 million USD loan: Bank of America ($25.00 million USD), BNP Paribas S.A. ($25.00 million USD), Citibank N.A ($25.00 million USD), and Sumitomo Mitsui Banking Corporation (SMBC) ($25.00 million USD).

Additional details

1. The average 3-month LIBOR for August 2017 was 1.314%. Therefore, the interest rate has been coded as 1.314% + 1.80%, or 3.114%.

Number of official sources

2

Number of total sources

3