EDP Brasil closes R$ 1.2 billion funding for new transmission line | edp.com

Pursuant to the terms and for the purposes of the article 17 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council and of article 248-A of the Portuguese Securities code, EDP - Energias de Portugal, S.A. (“EDP”) is providing the following information to the market:

EDP – Energias do Brasil, S.A. (“EDPB”), 51% held by EDP, announced today that EDP Aliança, 90% owned by EDP Brasil and 10% owned by Celesc, concluded the public offering for the distribution of bonds, with a proportional guarantee by its shareholders (EDP Brasil/Celesc), for the total amount of R$1.2bn with a 10-year maturity and a duration of 6.4 years. The issuance cost is IPCA + 6.72% p.a. totalling a post-tax debt cost to shareholders of IPCA + 3.34% p.a..

EDP Aliança is responsible for the development, construction and operation of the transmission line “Lot 21 of the Transmission Auction 05/2016”, with an extension of 485km to be built in Santa Catarina State. This line received the preliminary environmental license 8965/2018 on October 18th, 2018, and is pending the granting of installation licences (request filed on July 5th), to begin construction works.

This bond issue represents 99.8% of the estimated total investment in the line, and will result in significant gains regarding the profitability and Net Present Value for shareholders when compared to bidding assumptions at the auction.

EDP – Energias de Portugal. S.A.