Bank of China provides Portugal’s EDP with funding of 800 million euros

26 December 2012

Portuguese power company Energias de Portugal (EDP) will receive an 800 million-euro loan from the Bank of China according to a contract signed Thursday in Lisbon.

The contract was signed by Nuno Alves, the chief financial officer (CCFO) of EDP and Huang Hong, the managing director of the Bank of China in Luxembourg.

EDP’s CFO said that a second Chinese loan of 1 billion euros was due to be received by the company in January 2014.

Last July EDP received another 1 billion euro loan from the China Development Bank.

In December 2011 China Three Gorges Corp acquired 21.5 percent of EDP for 2.69 billion euros and negotiations are currently underway for the Chinese group to buy the 4.14 percent of EDP still owned by the Portuguese government.

China Three Gorges also bought a 49 percent stake in 37 wind farms of EDP Renováveis (EDPR) in Portugal.

The deal, which is part of the privatisation deal between the two companies, is worth 359 million euros and the payment is due to be made “in the first half of 2013,” said EDP’s chief executive officer (CEO), António Mexia.

“We are taking the first step in the sale of minority stakes in wind farms to China Three Gorges,” said Mexia, noting that the Chinese company had committed to investing 2 billion euros in EDP’s wind farms by 2015.

Mexia also said that, “there are another 1.641 billion euros to go and that is why the two companies are analysing 15 projects for joint development across the world.” (macauhub)