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)

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 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.