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The Brazilian Port of Açu, through Prumo's subsidiary Porto do Açu Operações, has received an approval letter from BNDES to refinance its outstanding short-term debt obligations.

Açu Port started operations at in 2014. Operations at the Açu Port's crude oil terminal are scheduled to begin in 2016. Operations at Açu Port's multicargo terminal started in July. The terminal has capacity to handle over 4 million tonnes per year of bulk materials, containers and cars.

The approval will replace its current bridge loan structure with a long-term, 18-year facility.

The agreement establishes the terms and conditions for the R$2.8 billion (US$797.6) long-term facility, of which R$2.3 billion will be funded upon closing and used to fully amortize the existing bridge-loans granted by the Bank.

Bradesco and Santander will act as on-lenders for this facility. The remaining dacility amount of R$500 million (US$142.4 million) will be used to fund port construction and will be provided by a third on-lending bank yet to be identified. The total tenor of the approved facility is 18 years with four years of grace period and 14 years of amortization.

With this facility, Prumo Logística has total consolidated long-term debt of R$3.3 billion (US$940 million), including R$1.0 billion of long-term debentures.

Eugenio Figueiredo, Prumo's CFO, stated:

"Eliminating the mismatch between our existing long-term contracts and our short-term liabilities will allow Prumo to continue its commercial ramp-up and realize the vision of the Port of Açu. Since EIG's investment and the 2013 restructuring we have taken Açu from a partially constructed project to a fully operational port-complex that is open for business. We are very proud to accomplish this on-time and on-budget while also commercializing this flagship asset, all of which allowed us to earn this level of endorsement from our lenders."

Edison Chouest is developing the largest offshore support base in the world at Açu Port to fulfil a contract to operate for Petrobras. The offshore support base is scheduled to begin operations by the end of 2015.

Manufacturing facilities of NOV, Technip and Wartsila have begun operations at the port and are currently delivering crucial, locally manufactured oilfield equipment to Petrobras' offshore projects. BP will begin the distribution of marine fuels at Açu Port by early 2016 in a 50/50 JV with Prumo.

Finally, Groupo Bolognesi and Prumo have signed an MoU for creation of the Açu Gas Hub, which provides solutions for LNG, domestic gas and thermal power, with first gas for clients at the port as early as 2017.

We have recently reported on several port PPP projects globally:

• Darwin Port lease - Australia
• Development of the Davao Sasa Port - Philippines
• Calais Port 2015 PPP project - France
• Vizhinjam port container terminal PPP - India
• Hon Khai island deepwater port - Vietnam