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Brazil: PE will pay BRL 4.7 billion in debts earlier as part of deal to buy Eldorado
Canadian company Paper Excellence (PE), owner of Asia Pulp and Paper, will pay BRL 4.70 billion (EUR 1.18 billion USD 1.45 billion) worth of loans and financing earlier than that debt was supposed to be paid off when it eventually takes over the Brazilian pulp maker Eldorado Brasil Celulose S.A., which used to belong to J&F Investimentos. Once this happens, PE will exchange expensive debts for cheaper loans in Asia. The loans taken from the Brazilian bank for social and economic development BNDES, for instance, are considered to be expensive as, amongst other things, close to 70 percent of them are US dollar-indexed. According to two undisclosed sources, PE is keen on completing the purchase. As a matter of fact, PE has already arranged cheaper loans with some banks, including China Development Bank and Industrial and Commercial Bank of China.