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Brazilian BNDES grants BRL1.40 billion for SPEs of Equatorial Energia [free access]

April 4, 2019

Brazil’s Banco Nacional de Desenvolvimento Econômico e Social (BNDES) or the National Bank for Economic and Social Development has signed a financial agreement worth BRL1.40 billion with the two units of Equatorial Energia – Equatorial Transmissora 4 SPE SA and Equatorial Transmissora 6 SPE SA.


The agreement has a 24-year maturity clause, with a 40-month grace period for interest and amortisation. The funding will be used to finance 80 per cent of the projects of both the companies.


With the closing of this agreement, Equatorial Transmissão concludes the funding efforts for 90 per cent of its financing needs for special purpose vehicles (SPVs) 1 to 8, an important step towards improving its capital structure under competitive conditions.


Equatorial Transmissora 4 SPE SA was set up by the company for Lot 14 of Auction 013/2015 held by Agencia Nacional de Energia Eletrica (ANEEL) in October 2016, which consists of the 500 kV, 257 km Igaporã III–Janaúba 3 C1 line, 500 kV, 337 km Janaúba 3–Presidente Juscelino C1 line, and 500 kV Janaúba 3 substation, in the state of Minas Gerais.


For Lot 16 of Auction 013/2015, the company started Equatorial Transmissora 6 SPE SA. This lot includes construction of the 500 kV, 330 km Janaúba 3–Presidente Juscelino C2 line in Minas Gerais and Bahia.