This excerpt taken from the PBR 6-K filed Nov 17, 2006.
On August 02, 2006 the Extraordinary General Meeting held by ALBERTO PASQUALINI - REFAP S.A. approved the value of the private issue of simple, nominative and book-entered debentures to the amount of R$ 852.600 thousand. The debentures are being issued in order to expand and modernize the companys industrial facilities and to raise its oil processing capacity from 20.000 m³/day to 30.000 m³/day, in addition to increasing the portion of national oils being processed.
The issue will be made under the following terms (basic terms approved by BNDES and BNDESPAR on June 23, 2006): term of issue up to December 30, 2006 and amortization over 96 months plus a 6-month grace period; 90% of the debentures shall be subscribed by the BNDES yielding interest at the Long-term Interest Rate +3.8% p.a.; 10% of the debentures shall be subscribed by BNDESPAR at the interest rate of the BNDES basket of currencies + 2.3% p.a..
On September 08, 2006, the Financing Contract was executed and the first installment was made available to the amount of R$ 601.000 thousand.
The remaining amount will be provided by February 2007 subject to proving the expenses incurred on expanding the refinery.