Enel Brazil secures bank financing

Enel Brazil secures bank financing

Brazil Europe China Debt Loans

Enel Brazil has obtained a 10-year $250m senior secured loan from the Bank of China and Santander to support growth in the country after its acquisition of Eletropaulo for BRL5.55bn ($1.48bn).

The financing comes secured against receivables and share collateral from Enel Brazil and is guaranteed by Italian parent and holding company Enel.

In June, the company announced it intended to invest roughly €1.5bn ($1.77bn) in Brazil through 2022, excluding the acquisition of Eletropaulo.

TozziniFreire Advogados was legal advisor to the two banks on Brazilian law, while Ashurst was counsel on international law. Enel Brazil mandated Cescon, Barrieu, Flesch & Barreto Advogados as local legal advisor and Norton Rose Fulbright advised the utility internationally.

As previously reported by LatinFinance, the Italian utility is also considering selling three to four power plants in Brazil and Mexico in order to reduce its debt load.

Enel CFO, Alberto De Paoli told analysts in late July that the company could raise roughly €1.2bn and €1.5bn from asset sales, but did not specify where all the targeted divestments were located.

Company net debt also rose 11.2% to €41.6bn for the six months ending June 2018, on the back of acquisition costs and dividends payments, according to Enel's latest financial statement.

In June, Enel's utility company in Chile tapped the bond market for $1bn, drawing one of the largest order books in months for a dollar deal in Latin America. Enel owns 62% of Enel Chile.

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