Etesa signs loan with Citibank
The $400 million loan has a term of 3 years and was approved by the Cabinet council to pay for the 3rd transmission line.
This loan has a term of up to 3 years, according to the Cabinet Decree 33 of August 8, 2018 published in the Official Gazette.
With these funds, , Etesa explained that the "turnkey" debt that was agreed for the design, construction and financing of the third electric transmission line amounting to $ 345 million and the maturity of short-term debt of $20 million with the National Bank would be canceled.
"We are pleased that the confidence that private banking has in the stability of the company was evident in this process. Last April, the board of directors authorized us to negotiate and choose one or several banking entities for financing, "said Etesa CEO Gilberto Ferrari.
Because of this, they received "very attractive" proposals from five recognized banking entities. Having the option to choose, Ferrari said that "the conditions offered by Citibank work well with the expectations and needs of the company."
Marcelo Gorrini , general manager of Citi Panama, said that through financing Etesa "we reaffirm our commitment, making available to all our customers the services and opportunities of our global connectivity".
"We have been present in Panama for more than 114 years and since 1904 we have been key to the financing and structuring of important financial operations."
The previous financing contract was given under the term "turnkey", which implies that the construction companies obtain financing and the Government subsequently pays for the work, according to a pre-established disbursement schedule.
This involved financing through a syndicated loan involving The Bank of Nova Scotia, Panama branch, Banco General, Banco Nacional de Panamá and Factor Global, which made 37 partial payments for $ 265.9 million to Odebrecht, by order of Etesa.
To this amount add the financing costs and an additional $ 60 million for the payment of easement.
The company informed that the remainder of the loan with Citibank will be used to partially finance the Expansion Plan of the National Interconnected System, as well as expenses related to the process of selection of contractor of the fourth line and the acquisition of its easement.
The conditions for this loan received the favorable concept of the National Economic Council (CENA) on August 2, when the general manager was authorized to sign the contract at the Cabinet Council session on August 8.
Because Etesa is excluded from the public non-financial public sector, this financing is not counted as part of the public debt.
Until June 30, Etesa had a calculated debt of $ 424.1 million.
In addition to the process of refinancing short-term debt, for medium-term debt, the company is preparing to make a bond issue in international markets.
Currently, they are working on having audited financial statements, one of the requirements demanded for issuance.