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Brazil's Neoenergia requests $313 million loan to cover COVID-19 losses - Metro US

Brazil’s Neoenergia requests $313 million loan to cover COVID-19 losses

The facade of Neoenergia NEOE3.SA energy company headquarters is pictured in Rio de Janeiro

SAO PAULO (Reuters) – Brazilian power holding company Neoenergia SA <NEOE3.SA> has requested a 1.664 billion-real ($313.12 million) loan for its four distributors as part of a government effort to support utility companies amid the coronavirus pandemic.

The so-called “Conta-Covid” operation, which was launched through a presidential decree on May 18, aims to boost power distributors’ liquidity and involves several banks led by Brazilian Development Bank BNDES.

Neoenergia, which is 52.5% controlled by a unit of Spain’s Iberdrola SA <IBE.MC>, said its four energy distributors, Coelba, Elektro, Celpe and Cosern, have joined the Conta-Covid.

Of the total amount, Coelba accounts for 499.6 million reais, while Celpe requested 454.7 million reais, Cosern <CSRN5.SA> aims for 95.5 million reais and Elektro 614.3 million reais.

(Reporting by Gabriela Mello; Editing by Dan Grebler)

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