EDP/AdP consortium sells 70 million euro debt to Cape Verdean bank

21 December 2006

Praia, Cape Verde, 21 Dec – The Portuguese consortium EDP/AdP, which until August held a majority stake in the country’s electricity provider Electra, Wednesday sold a 70 million euro debt owed by the Cape Verdean company to a Cape Verdean bank for 40 million euros, officials said.

The contract for buying the debt Electra took up on August 31 from EDP/AdP (Energias de Portugal/Águas de Portugal) as part of an agreement to restructure the Cape Verdean water and electricity company, was signed with Banco Comercial do Atlantico (BCA, majority-held by Portuguese bank, Caixa Geral de Depósitos), the bank said.

The restructuring agreement took place before the Portuguese companies moved out of Electra, after a long and intense controversy and involved the liquidation, by EDP/AdP, of the loans resulting from Electra’s operation, to the value of 71 million euros, an amount which was to be paid over 20 years.

With this financial deal, EDP and AdP will immediately receive 40 million euros instead of the 70 million that they would receive over a 20-year period.

At the same time Electra also obtained financing in Cape Verdean escudos from the BCA of 4.4 billion, to “refinance the debt”.

With this move EDP and AdP, now have just a 14 percent stake in Electra to link them to the company. (macauhub)