US$500 million loan signed with Eletrobrás

(Caracas, November 29, 2010).- Eletrobras will receive a syndicated type A/B loan for US$500 million from CAF – Latin American development bank. The amount is divided into two parts: part A for US$125 million to be contributed by CAF, and part B US$375 million under the responsibility of five banks: HSBC, BBVA, Santander, BTM and SMBC

The US$500 million will used to form the Financing Fund for Subsidiaries (FFC), set up in 2007 to provide the funds needed for development of projects awarded to the Eletrobras companies in bidding processes organized by Aneel (National Electric Energy Agency), most of them in conjunction with private companies in the areas of generation and transmission, in addition to investments in renewable energy.

Eletrobras has been involved in operations with CAF since 1997, when it received the first direct loan for the energy interconnection between Brazil and Venezuela by construction of a transmission line between the two countries. Since then, CAF has granted three more loans to Eletrobras.