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Electric Power Transmission Auction 002/2107

Objective

To support projects that aim to expand and/or modernize the infrastructure of electric power transmission in Brazil, tendered at ANEEL auction 002/2017.

Who is entitled to request financial support

Companies with seat and administration in Brazil and legal entities governed by public law.

What is eligible to receive financial support

Projects of transmission lines and substations tendered at ANEEL auction 002/2017.

Minimum loan amount

R$ 20 million. For lower amounts, refer to BNDES Automatic financing lines.

Interest Rate

Direct support (financing directly with BNDES)

Interest rate = Cost of funds + BNDES’ margin + Risk spread, as follows:

Composition of interest rates for direct support

Cost of funds = TJLP (Brazilian long-term interest rate) or TLP (long-term rate) or IPCA (consumer price index), at the client’s discretion, for machinery and equipment; TLP or IPCA, at the client’s discretion, for other elegible items

BNDES’ margin = According to conditions existing at the time of project framework

Risk spread = According to conditions existing at the time of project framework

Indirect support (finance done by intermediation of commercial banks)

Interest rate = Cost of funds + BNDES’ margin + Financial intermediation rate + Commercial bank spread, as follows:

Composition of interest rates for indirect support

Cost of funds = TJLP or TLP or IPCA, at the Customer’s discretion

BNDES’ margin = According to conditions existing at the time of project framework

Financial intermediation rate = According to conditions existing at the time of project framework

Commercial bank spread = Negotiated between the Commercial Bank and the customer/project.

Also, refer to other rates charged in BNDES’ financing contracts.

BNDES’ maximum participation

BNDES’ maximum share will be up to 80% of all eligible items, except for the credit granted in TJLP, in which BNDES’ maximum share will be up to 60%.

The project must have at least 20% investment of own resources.

BNDES will be able to purchase infrastructure bonds issued by the project.

Amortization

The amortization maturity date will be 20 years for all eligible items, except for the credit granted in TJLP, in which the amortization maturity date will be 14 years.

The interest shall be capitalized during the grace period, which may be of up to six months after the entry of the project into commercial operation, set forth at the time of the deliberation regarding the credit granting.

Amortization system: Price system shall be adopted.

Loan Amount 

Loan Amount shall be determined according to the project capacity of payment, observing the minimum Debt-Service Coverage Ratio (ICSD) of 2.0, assessed annually.

For the general start-up of the project, considering the debt with BNDES and any other creditors, including infrastructure bonds to be issued by the client, the global ICSD, measured annually should be at least:

  • 1.3 from the first to the tenth year of amortization of the debt owed to BNDES;
  • 1.4 from the eleventh to the fifteenth year of amortization of the debt owed to BNDES; and
  • 1.5 during the remaining period of amortization of the debt owed to BNDES.

Contractual guarantees and obligations

Indirect support: negotiated between the accredited financial institution and the client.

Direct support: defined in the operation analysis, with the following highlights:

Personal Guarantees: in case of bank guarantees required until the BNDES declaration of physical and financial completion of projects, they must have a minimum validity term of two years, renewable for at least one year and a half.

Dividends distribution: dividends and interest on equity (JCSP, in portuguese)) may be distributed as follows:

  • Up to the completion: maximum amount equivalent to the mandatory minimum, limited to 25% Adjusted Net Income.
  • After the completion: amount may exceed 25% Adjusted Net Value, provided that:
    • there is no non-compliance with financial and nonfinancial obligations with BNDES; and
    • in the terms set forth in BNDES loan contract: (i) there are annually audited financial statements; (ii) minimum ICSD has been performed in the previous year; (iii) minimum ICSD performance is not impaired in the current year, and (iv) there was minimum generation of energy in the previous year.

Reserve Account: it shall be equivalent to three months of the projects debt service (s).

Find out more about guarantees of operations with BNDES’ resources.

Financing availability

This document presents the conditions available at BNDES for those that win the bidding process of concessions, object of Electric Power Transmission auction 002/ 2017, and it does not necessarily imply the future winners of the bid have the right to obtain funding. Once the results have been approved and the energy procurement and sale contracts signed, the winners must apply for BNDES loans, which shall analyze the application and registration status of each applicant and potential guarantors, as well as all legal, economic and environmental aspects of the projects presented.

How to request

Support requests are submitted to BNDES by the interested company or by means of the accredited financial institution, through previous consultation, filled in according to orientations of the information route and sent to:

Brazilian Development Bank – BNDES
Área de Planejamento e Pesquisa – APP
Departamento de Prioridades – DEPRI
Av. República do Chile, 100 – Protocolo – Térreo
20031-917 – Rio de Janeiro – RJ

Contact

BNDES will gladly answer your message regarding the financial conditions presented above. Please send to the following e-mail: sup.ae@bndes.gov.br

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