Triunfo, Porto Sudeste put off BNDES loan payments

Triunfo, Porto Sudeste put off BNDES loan payments

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Brazilian infrastructure company Triunfo and port operator Porto Sudeste have both negotiated standstill agreements with national development bank BNDES as revenues fall on travel and trade restrictions during the coronavirus pandemic.

Triunfo negotiated six-month extensions for the loans it took out for the Concebra and Transbrasiliana toll road concessions, while Porto Sudeste got an extra month to make payments that were due on May 15, according to the companies.

Roberto Carvalho, the head of investor relations at Triunfo, said during a conference call on Friday to go over first-quarter results, BNDES adopted "tax measures" to minimize the company's loan payments.

Guarantees in its concession contracts, triggered in the case of events like a pandemic, allow Triunfo to charge higher rates, lower investment levels and negotiate longer investment periods, according to the company.

Porto Sudeste, jointly owned by Abu Dhabi investment firm Mubadala and commodity trader Trafigura, said in a statement on Thursday that it is negotiating the final terms of a credit agreement with BNDES.

The port operator added that it signed a standstill agreement with Spanish export credit agency CESCE and started talks with other creditors that are expected to last at least three months.

Triunfo asked in April to return the Concebra concession to the government, citing a weak economy and the government's unpredictable long-term financing policies.

BNDES provided a bridge loan for BRL1.06 billion ($48 million at the time) shortly after Triunfo formed Concebra in January 2014 and then granted BRL3.58 billion in 25-year financing in February 2016 at 200 basis points over the TJLP long-term lending rate. BNDES replaced the TJLP with the market-based TLP in 2018.

In January 2017, BNDES demanded full payment of two bridge loans granted to Concebra and Concer, another toll road concessionaire owned by Triunfo. It also called on Banco do Brasil and BDMG to honor their guarantees on a BRL796 million bridge loan to Concebra.

Triunfo also owns 45% of Aeroportos Brasil Viracopos (ABV), a concessionaire that has agreed to return the Viracopos airport to the government. The company posted a net loss of BRL14.9 million ($2.8 million) in the first quarter this year, down from a loss of BRL67.2 million in the same period last year.