Skip to main content
IDB signs $100 million risk protection guarantee to assist expansion and modernization of two electricity companies

Representatives of the Inter-American Development Bank and Banco Sudameris de Investimento S.A. have signed an agreement providing for a $100 million guarantee against risks associated with currency convertibility and transferability and funds expropriation.

The guarantee, the first provided by the IDB for the private sector in Brazil, will facilitate loan financing of the expansion and modernization of the networks of two electricity distribution companies, Companhia Paulista de Força e Luz, S.A. and Rio Grande Energia, S.A.

The loan is being provided by a syndicate of commercial banks to VBC Energia S.A., a Brazilian company of which the two energy companies are affiliates. Banco Sudameris is the political risk coverage arranger for the syndicate.

Jump back to top