Empresa Bandeirante de Energia (EBE)

Active

Prospective

The sale of Empresa Bandeirante de Energia concluded the first phase of Brazil's privatization program, i.e. the sale of its distribution assets. Empresa Bandeirante de Energia is the fourth largest distribution company in Latin America. It was spun off the state utility company Eletropaulo that was further split into the distribution company Eletropaulo Metropolitana and Empresa Paulista de Transmissao de Energia. EBE provides nearly 2 million customers in the State of Sao Paulo in 55 towns including Baixada Santista and Tiete. Its customer base is 64% industrial and 20% residential. Controling package of shares of EBE comprising a 74.88% voting stake (29.8% of total capital) was sold at the second attempt on September 17, 1998 to the team of Eletricidade de Portugal (EdP) and a private Sao Paulo electricity distribution company CPFL for the minimum price of US$ 860 million. As of 2001, EdP was controlling 56% of the holding, while CPFL was holding the remaining 44% stake. EdP funded its portion of the transaction with a US$ 300 million bridge loan and US$ 250 million from its own resources. CPFL utilized the line of credit offered by BNDES. EdP and CPFL announced plans to invest around US$ 210 million over the couple years following their acquisition of the stake in EBE. In 2000, EdP and CPFL aquired an additional stake in EBE for US$ 254.7 million, raising their stake in the company's capital to 96%. In August 2001, EBE was divided in two companies: EBE and Companhia Piratininga de Forca e Luz (CPFL Piratininga). EdP took control of EBE, holding 96% of its total capital, and CPFL group got the control of CPFL Piratininga. In December 2003, as a result of a major corporate reestructuring in EdP, Bandeirante was controlled by EdP Brasil, one of the subsidiaries of EdP S/A. In December 2003, the Interamerican Development Bank (IADB)approved a US$100 million financing to EBE. The funds were disbursed in March 2004. The company served more than 1.32 million customers. In 2009, the company was granted a US$ 78 million (BRL 156.1 million) loan from BNDES and Eletrobras, while Santander and Banco do Brasil granted a US$ 41.6 million (BRL 83.1 million) loan in the same period. The loan granted by IADB was split in two installments. The first installment (US$38.9 million) was provided directly by IDB. It will be due in 8 years. The second installment (US$61.1 million) will be provided through a poll of six banks. It will be due in 5 years. http://www.bandeirante.com.br/investidores/ri/relatorios_administracao/pdf/bandeirante_rad_2006.pdf

Energy

World Bank Group

Project

Bridge, Manufacturing (Industrial), Power Transmission, Residential, Power Generation (CCGT), Government, Commercial