China’s State Grid Said to Seek Proposals for $9 Billion Loanby
Borrowing is in connection to its purchase of a stake in CPFL
The development comes after Brazil’s regulator approved deal
State Grid Corp. of China, the world’s largest utility, has asked lenders to submit proposals for a loan of about $9 billion to help finance its purchase of a stake in Brazil’s CPFL Energia SA, people familiar with the matter said.
The facility includes dollar- and euro-denominated portions in one-, two- and three-year tranches, according to the people, who asked not to be identified because the details are private. The Chinese firm bought a stake in Brazilian power distributor CPFL for 5.9 billion reais ($1.85 billion) to extend its reach in Latin America’s largest economy, according to a statement on its website last month.
Chinese companies are seeking to grow in Brazil at a time when local companies are struggling with the worst recession in a century. The call for financing comes after Brazil’s antitrust regulator approved the deal without restrictions.
Two calls to the press office of State Grid went unanswered.
State Grid has requested that banks submit their proposals by Oct. 28, the people said.