Eletrobras seeks US$2.9bn to fund expansion

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Tuesday, July 22, 2014

The board of Brazilian energy giant Eletrobras has approved a 6.5bn-real (US$2.9bn) capital raise to bankroll the firm's five-year business plan.

The funds will be disbursed in three tranches via loans from state-owned banks Banco do Brasil and Caixa Econômica Federal, Eletrobras said in a statement.

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According to the state-run utility, Banco do Brasil has approved 4bn reais in credit and Caixa 2.5bn reais.

The eight-year loan term stipulates monthly principal repayments after an initial two-year grace period.

In March, Eletrobras announced plans to invest 60.8bn reais by 2018.

The company's work backlog includes transmission and generation projects belonging to subsidiaries Chesf, Furnas, Eletrosul, Eletronorte, CGTEE, Eletronuclear and Itaipu Binacional.

Eletrobras aims to add 13.4GW of installed capacity and 19,200km of transmission lines in the five-year period. The expansion also targets the 50% acquisition of Uruguayan wind developer Rouar.