Brazil BNDES Bank Approves $585 Mln Loan For MPX Energia

SAO PAULO (Dow Jones)--MPX Energia (MPXE3.BR) was approved Wednesday for a 1.04 billion Brazilian real ($585 million) loan from Brazil's national development bank, BNDES, to build its coal-fired power station known as Itaqui.

The 17-year loan includes a BRL797 million loan at 2.78% interest rates per year, BRL141 million at 4.5% to 5% and BRL100 million at 12.6%.

Itaqui is part of the government's Accelerated Growth Program. It will have 360 megawatts of installed capacity, with 315 megawatts already sold in the October 2007 government power auction, guaranteeing a fixed annual revenue stream of BRL252 million.

Itaqui is expected to be operational by January 2012.

-By Kenneth Rapoza, Dow Jones Newswires; 5511-2847-4541; kenneth.rapoza@dowjones.com

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