IDB Sponsors ATE II Electricity Transmission Project
The Inter-American Development Bank (“IDB”) has granted a US$119,554,000 loan to ATE II Transmissora de Energia SA (“ATE II”), a Brazilian subsidiary of the Spanish company Abengoa SA. ATE II has been awarded a 30-year concession to develop, design, construct, operate and maintain a 1,200 MW, 937 km, 500kV electric energy transmission line that will cross Brazil’s Northern and Northeastern regions. The substations are located at Colinas, in the State of Tocantins, Ribeiro Gonçalves and São João do Piauí, in the State of Piauí, and Sobradinho, in the State of Bahia. The ATE II Project also includes the construction and electro-mechanical assembly for the enlargement of the existing substations and the construction of the new substation of Ribeiro Gonçalves. IDB’s first disbursement was effected on October 31st and the following guarantees were granted by ATE II and Abengoa SA in the context of the ATE II Project: the pledge of 100% of the shares issued by ATE II; the pledge of the rights under the concession and any other credit owned by ATE II, including receivables arising out of the rendering of energy transmission services; and the conditional assignment of certain contracts executed by ATE II. Citibank S.A. is the collateral agent of the security package in Brazil. The ATE II Project is the second transmission line project that IDB has financed in Brazil and other project finances in the same field are expected to be sponsored by IDB within the next year.