Santa Catarina Gets BNDES Funds

BNDES has agreed to provide a BRL3bn ($1.5bn) loan package to the Brazilian state of Santa Catarina, it says. Of the funds, BRL1.8bn will be dedicated to infrastructure projects from 2012-2015, allowing for the buildout of transportation, hospital, school and government facility improvements. Another BRL979.6m will be used to pay down a 2002 loan to state-owned utility Centrais Eletricas de Santa Catarina, and BRL200m will go toward a capital increase Santa Catarina will contribute to the Banco Regional de Desenvolvimento do Extremo Sul (BRDE) development bank. Additional details were not available and BNDES officials do not respond to a request for additional comment. The BNDES funds follow a $726m 10-year international loan signed in January with Bank of America Merrill Lynch, paying 4.0%.