Tropicalia Transmission Line

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The project involves the construction of 246 KM energy transmission line at 500 kV linking the Sapeaçu substation to Poções III substation across the State of Bahia in Brazil. The SPV Tropicália Transmissora de Energia SA won the auction held in October 2016 and signed a concession contract in February 2017 with Brazilian Electricity Regulatory Agency (ANEEL). Tropicália is owned by private equity funds managed by BTG Pactual. The value of the project is BRL 475.08 million or $ 127.39 million. The equity part is BRL 96 million or $ 25.74 million. The project is also financed via a loan from Banco do Nordeste do Brasil in the amount of BRL 290.4 million or $ 77.87 million signed on 18 June 2018 with 1st withdrawal occurring on 25 February 2019. In addition, a bond issue has been launched in April 2019 when the SPV mandated Itaúbba and Santander Brasil to coordinate the issuance of debentures, in the amount up to BRL 90 million, with firm placement guarantee to raise funds in the local capital market. Financial close was reached on 11 February 2019 when a collateral agreement was signed with Santander Brasil and Sumitomo Mitsui Brasileiro in the amount of BRL 379 million, to issue letters of credit to guarantee the loans during construction period. Between March and April 2017, the SPV signed contracts with Siemens for extending the Sapeaçu and Poções III substations, with SAE Towers for the 500kV transmission line implementation, and with Alubar for the supply of aluminum cables for the transmission Line. Commercial operations are due to begin before February 2022; however the company estimates that it could happen by August 2020. Machado Meyer Sendacz e Opice Advogados and Demarest Advogados acted as legal advisers. http://www.tropicaliatransmissora.com.br https://ijglobal.com/data/transaction/44537/tropicalia-transmission-line-246km