LISBON, May 30 (Reuters) - China Development Bank Corporation (CDB) will lend $400 million to Portuguese power grid operator REN until the end of 2013, REN’s Chief Financial Officer (CFO) said on Thursday.
The amount will be the second parcel of a 1 billion euro credit line promised by the Chinese bank as part of last year’s REN privatization deal, in which China State Grid bought a 25 percent stake in the utility.
“The second tranche is now being negotiated. It will be necessary until the end of the year and REN and CDB are working within schedule,” CFO Goncalo Morais Soares said in an interview on the sidelines of a conference hosted by Reuters and local TSF radio.
Soares said the company will use the new cash to expand to Brazil, Angola and Mozambique, after using the first tranche - also worth 400 million euros - to reduce its debt load.
“Our liquidity position is very comfortable,” he said, adding that the company is financed until the end of 2015. (Reporting by Filipa Cunha Lima, Writing by Daniel Alvarenga; editing by Barry Moody)