State Grid, Sterlite fund transmission lines in Brazil

State Grid, Sterlite fund transmission lines in Brazil

Debenture Debt Capital Markets Project & Infrastructure Finance Energy Electricity Brazil

China's State Grid and Sterlite Power from India have raised funds for transmission line projects in Brazil by issuing a combined BRL232m ($61.5m) in debentures, according to the local capital markets association Anbima.

Porto Primavera Transmissora de Energia, a State Grid subsidiary, sold BRL112m in 10-year notes at 445bp over the DI interbank lending rate in a deal coordinated by Banco ABC Brasil, the local division of Bahrain-based Bank ABC, according to Anbima.

State Grid acquired the transmission line concessionaire from Spain's ACS in 2012. The deal included four other transmission line companies, Iracema, Itatim, Araraquara and Catexerê.

State Grid has outlined BRL1bn in annual investments in Brazil and said it will participate in upcoming transmission concession auctions. It has also said it will look for acquisitions in Chile, Peru, Colombia and Argentina.

Brazil's national development bank BNDES authorized a 24-year, BRL5.21bn for another State Grid subsidiary, Xingu Rio Transmissora de Energia, in December last year. 

SE Vineyards Transmissão de Energia, a concessionaire owned by Sterlite, issued BRL120m in one-year notes at 190bp over the DI. BB Investimentos, the investment banking division of the state-owned lender Banco do Brasil, coordinated the deal, according to Anbima.

Another Sterlite subsidiary, Arcoverde Transmissão de Energia, sold BRL140m in 18-months debentures in November last year.

With nine transmission line concessions, Sterlite has signed on to make BRL7bn in investments in Brazil.

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