Furnas to raise US$335mn from receivables fund

Federally owned Brazilian generator Furnas plans to raise 903mn reais (US$335mn) through a receivables fund, company CFO José Cury said in a statement. Furnas' board approved the proposals for the funds by a group of banks led by Spanish bank Banco Santander (NYSE: STD). The other banks were Brazil's Bradesco, BB Banco de Investimento (controlled by federal bank Banco do Brasil), Banco Itaú, BBA and Votorantim. The money will be used to finance the company's 1.4bn-real investment program in 2005, the statement said. The fund will include 228mn reais receivables that the federal government agreed to pay through 2010; 89mn reais in outstanding payments owed by sister company Eletronorte through 2008; 258mn reais in receivables from Goiás state power company Celg though 2010; 162mn reais to be paid by Brasília power company Ceb through 2010; and 166mn reais that sister company Eletronuclear has in outstanding payments to be made through 2007. The banks that subscribed to the fund will receive 60 monthly payments from June ranging from 10mn-46mn reais, Furnas said.