US$100 million for Brazilian electricity sector

The Andean Development Corporation (CAF) today approved a US$100-million A/B loan to partially finance the Investment Plan of the utility Centrais Elétricas Brasileiras for generation and transmission assets, as well as for general corporate purposes.

CAF President & CEO Enrique García explained that the approval is part of the Corporation's actions to promote an integrated development agenda. "In the last 30 years growth of electricity consumption in Brazil has been above economic growth, so this approval is very important as part of the solution to the energy demand in this South American country."

García said that CAF's relation with Eletrobrás dates from 1997 when a direct loan for US$55 million was granted to finance the Venezuela-Brazil energy integration project. "Always in line with CAF’s institutional objectives, which include promoting and financing programs and projects of public and private sustainable infrastructure, support for physical integration, production and regional logistics."

With the A/B loan scheme, CAF plays a catalyzing role in the region mobilizing substantial long-term financial resources into the region, with the participation of commercial banks in the financing.

About Eletrobrás

Eletrobrás, created in 1961, is the holding company of the Eletrobrás Group. The most important subsidiaries in the Group are Fumas Centrais Elétricas S.A., Compañía Hidro Eléctrica do Sao Francisco, Eletrosul Centrais Eléctricas S.A., Centrais Elétricas do Norte do Brasil S.A., Eletrobrás Termonuclear S.A., Compañía de Generación Térmica de Energía Eléctrica, as well as an interest in Itaipú. The Group is the main provider and transmitter of high-voltage electricity in Brazil and source of finance for the electric sector.

Eletrobrás is active in the design, construction and operation of all types of electricity generators (hydro, thermal, nuclear, alternative energy), transport of high voltage power and marketing of energy. The utility also cooperates with the Brazilian Ministry of Energy and Mines on the design of national policy for the electricity sector; grants financing to public companies in the sector; promotes research and development and administers the resources of the sector to finance a series of governments programs.