BNDES Approves $3.72b Loan to Sete Brasil

The Brazilian Development Bank (BNDES) has approved a $3.72 billion loan to Sete Brasil.

The loan will help Sete Brasil to finance construction of nine drilling rigs out of 29-rig portfolio announced in 2012, two semisubmersibles and seven drillships, the bank said in its release yesterday.

These nine rigs, slated for delivery between 2015 and 2016, are being built in five Brazilian shipyards: Jurong Aracruz ( ES ), Atlântico Sul Shipyard ( PE ), BrasFels ( RJ ), Rio Grande Shipyard ( RS ) and Enseada Paraguaçu shipyard ( BA ).

Sete Brasil has 30 rigs in its portfolio, of which 28 will be leased by Petrobras for 15 years. All of them will be built in national territory, with an average domestic content of 62%.

In addition to the $3.7 billion loan, BNDES also authorized BNDESPAR, its investment arm, to subscribe $507 million in bonds convertible into Sete Brasil shares, reports Bloomberg.

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Press Release, January 17, 2014