NEW YORK (TheStreet) -- Banco Bradesco (BBD) was gaining 4.9% to $14.83 Monday on news that it is in talks with the Brazilian government about a potential loan for electricity industry clearinghouse CCEE.
The bank and the government are still decided the terms of the potential loan for CCEE. The plan is to offer a loan instead of a bond sale. CCEE is a privately held company that's in charge of buying and selling electricity in the spot market
According to Reuters, the Brazilian government is helping CCEE get around 8 billion reais ($3.6 billion) in loans, which it would then spread to power distributors. Electricity companies in the country are having trouble dealing with rising spot power costs while the government is reluctant to increase rates for consumers.
"Banco Bradesco SA (the Bank) is a Brazil-based bank. Together with its subsidiaries, the Bank offers a range of banking and financial products and services, including deposit taking, individual and corporate banking services, credit operations, mortgage loans, credit and debit cards, leasing operations, investment banking, international banking, securities brokerage, portfolio management, consortium services, various types of insurance, management of complementary private pension plans and savings bonds, among others. The Bank is active in Brazil and abroad. Banco Bradesco SA divides business into six segments: Bradesco Corporate, Bradesco Companies, Bradesco Private Banking, Bradesco Prime, Bradesco Retail and Bradesco Expresso. The Bank operates through a number of subsidiaries, such as Banco Alvorada SA, Banco Bankpar SA, Banco Bradesco BBI SA, Banco Bradescard SA, Bradesco Administradora de Consorcios Ltda and Bradesco Saude SA, among others."