AES to restructure BNDES loans for Eletropaulo, AES Uruguaiana, Tiete

By Carlise Newman

Chicago, Sept. 9 - AES Corp. has entered into an agreement with Banco Nacional de Desenvolvimento Economico e Social to restructure the outstanding loans owed to BNDES by several of AES' Brazilian subsidiaries.

The restructuring will include the creation of a new company that will hold AES' interests in AES Eletropaulo, AES Uruguaiana and AES Tiete. AES Sul will be contributed upon the completion of its financial restructuring. AES will own 50.1% and BNDES 49.9% of the new company.

Under the terms of the agreement, 50% of the outstanding BNDES debt of $1.2 billion will be converted into 49.9% of the new company. The remaining $515 million will be payable over a period of 10 to 12 years.

AES and its subsidiaries will $85 million as part of the restructuring, of which $60 million will be contributed at closing and $25 million will be contributed one year after closing.

Closing of the transaction is subject to the execution of documentation, lender and regulatory approvals and valuation diligence to be conducted by BNDES.

Arlington, Va.-based AES is a global utility company.

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