Monday, November 29, 2010

Banks Offers $11.8 Billion for Sao Paulo-Rio Rail by 2016

Brazil's national development bank, BNDES, has offered to lend nearly $12 billion to help fund a high speed rail link between Rio de Janeiro and Sao Paulo, the country's two biggest cities.

The 30-year loan will pay interest of 6 percent plus another percentage point in fees related to credit risk, state lender BNDES said in a statement. Borrowers will only start paying the loan six months after the expected start of the train service between Sao Paulo and Rio de Janeiro by 2016.

The BNDES funding is equivalent to 60 percent of the estimated 33 billion reais cost of the project. The consortium that will build the railway will be picked in an auction scheduled for Dec. 16, the statement added.

Brazil offers to lend $11.8 bln for high-speed train
November 8, 2010