|
|
 |
|
 |
 |
11.17.08
»
BNDES discloses support conditions to finance transmission lines at Madeira River complex
BNDES Directors approved the conditions for the financing of investments in the construction of the transmission lines associated to the power plants of Madeira River complex. This is intended to disclose the rules for the granting of BNDES loans to all bidder. The bid is to take place on November 28.
The investment for the construction of transmission lines is expected to reach R$ 7 bi. BNDES’ support will cover financeable items, according to BNDES Operational Policies; imported equipment not manufactured in Brazil; bridge loan; and expansion of total maturity to 20 years, being the maturity term of up to 16 years, on a monthly basis, through the Constant Repayment System (SAC).
BNDES support conditions
• Financial support mode: Corporate financing and/or project finance.
• Beneficiary: It must be a joint stock company, preferably incorporated with the specific purpose of implementing the financed project (SPECIAL PURPOSE COMPANY - SPE), and to separate cash flows, project equity and risks.
• Types of financial support: Direct financing with BNDES; indirect financing by transfer through Accredited Financial Institutions; or mixed financing, a combination of direct and indirect financing.
• Maximum BNDES spread: Up to 70% of financeable items. Shareholders’ capital must be at least 30% of the project total investment.
• The Debt Service Coverage Ratio (DSCR) must be, throughout the financing repayment period, at least 1.3. If the project Internal Rate of Return (IRR) is higher or equal to 8% per annum in general, the DSCR may be, throughout the repayment period, at least 1.2.
• The shareholders must prove their financial capacity to inject their own money, by making reference to the origin, availability and money injection schedule.
Interest Rate
The final interest rate to the Beneficiary varies according to the type of financial support and is structured as follows:
• Direct operation:
BNDES basic spread, plus a credit risk rate, plus financial
cost.
• Indirect operation:
BNDES basic spread, plus financial intermediation rate, plus Accredited Financial Institution Spread, plus financial cost.
BNDES basic spread for transmission lines is 1.3% per
annum.
The credit risk rate varies according to the Beneficiary’s risk, as set forth in BNDES Lending
Policy.
The financial intermediation rate is 0.5% per annum.
The Accredited Financial Institution Spread is negotiated between the Beneficiary and the Accredited Financial
Institution.
The financial cost will be set as follows:
• Long-Term Interest Rate (TJLP), for all items, excepting imported equipment not manufactured in Brazil; and
• IPCA: for imported equipment not manufactured in Brazil, IPCA plus the charges set out in BNDES Operational Policies.
Total maturity may reach 20 years, with grace period of up to 6 months after the project startup, and repayment of up to 16 years, with monthly periodicity, through the Constant Repayment System (SAC).
The bridge loan may be performed directly with BNDES, or through Accredited Financial Institutions, with financial cost at the fixed rate of 14.5% per annum, plus BNDES basic spread, plus credit risk rate (for direct operations). As for indirect operations, the fixed rate is added to BNDES basic spread, plus a financial intermediation rate, plus the Accredited Financial Institution spread. The maturity reaches 18 months, and the facility may cover up to 30% of the total amount financed by BNDES.
 Back
to news
|
|
|
|
|
