BNDES clears USD 923.8m bridge loan for ethanol logistics company
Sep 30, 2011 - Brazilian National Social and Economic Development Bank (BNDES) said yesterday it approved a BRL 1.7 billion (USD 923.8m/EUR 682.8m) bridge loan for ethanol logistics company Logum Logistica.
The funds will be used for the construction of an ethanol pipeline and collection centres.
These facilities are part of Logum's planned comprehensive logistics system for multimodal transport of ethanol, to comprise 1,330 km (826.4 miles) of pipelines, with the capacity to transport 20.8 million cu m (734.5 cu ft) per year, and ten ethanol storage terminals.
The project, which has been included in the government's Growth Acceleration Program (PAC), is estimated to absorb BRL 6.5 billion.
Almost 90% of that sum is expected to be extended by BNDES.
The bank is currently analysing a BRL 5.8 billion project finance loan, according to Leonardo de Almeida, department manager at BNDES, as reported yesterday by local news agency Agencia Estado. The approved bridge loan will be deducted from the first instalment of the total loan, Almeida noted.
Logum was established in March this year as a partnership between Brazilian federal oil and gas major Petrobras (NYSE:PBR; SAO:PETR3), the transport arm of local builder Odebrecht and sugar and ethanol producers Cosan (SAO:CSAN3) and Copersucar, holding 20% each. The oil and gas unit of construction firm Camargo Correa and the logistics division of pipeline developer Uniduto, in turn, both own stakes of 10%.