China Development Bank reschedules $47,337,800 loan to State Grid International Corporation's Ribeirão Preto Transmissora de Energia — via one year principal payment deferment — in 2016 (Linked to Record ID#60075 and #106215)

On November 17, 2014, China Development Bank provided a $47,337,800 loan to State Grid Brazil Holding S.A. for its subsidiary Ribeirão Preto Transmissora de Energia S.A. (RPTE). The loan has an interest rate of LIBOR + 2.85% (Nov. 2014 6 month LIBOR average + 2.85 = 3.177%).

Principal and interest payments will be in 21 semi-annual installments beginning on December 2014 and with final maturity on September 4, 2024. In June 2016, due to cash problems, the company failed to pay the principal due at the time and only paid the interest. The company and CDB negotiated to repay the debt owed then in June 2017 (Linked to Record ID#106214).

In December 2016, payment was made as stipulated. In 2017, payments were made as stipulated. In 2018, due to low cash flow, the company failed to pay the principal again in Decemeber.

On December 18, 2018, the company and CDB entered into a debt rescheduling agreement in which they agreed to extend the maturity period by 2.8-years, maturing on June 20, 2027 (Linked to Record ID#106215). In 2019, the company paid principal and interest according to the new debt payment curve. In 2020, the company paid principal and interest in June and in December it paid only interest.

For the payment of the principal, due to the economic crisis caused by COVID-19 and based on the loan agreement which states that the Concessionaire has the right to decide whether or not to pay the loans on the due dates, depending on the financial and operational situation of the company, we are reviewing our strategies for the coming years.

On September 30, 2021, the parent company State Grid Brazil Holding (SGBH) assumed the rest of balance, effectively eliminating Ribeirão Preto Transmissora de Energia S.A.’s obligations.

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.