EDP generates R$892.2 million with debenture issuance

Tuesday 27, October 2015

High market demand makes final valuation exceed initial offer by over R$140 million

EDP - a company engaged in electricity generation, trading and distribution - reports that it has generated R$892.2 million with the issuance of debentures. This is the first time the company opens this kind of operation to all investors; on previous occasions, debenture issuances were targeted at qualified investors only. The process was concluded on October 16. The initial offer was expected to generate R$750 billion in debentures, but high market demand hiked that amount to R$892,206,000.00. This was the first successful operation of the kind in the Brazilian energy sector in 2015.

"These outstanding results show that the securities market trusts EDP seriousness and operational excellence," says EDP president Miguel Setas. "This achievement is all the more significant in the current political and economic context, which has led several companies to abandon financial asset trading operations."

EDP investor relations are based on transparency, corporate governance, and cash flow visibility. Moreover, in accord with one of the company strategic mainstays, EDP has adopted rigorous risk management measures while keeping a strictly up-to-date internal schedule for following up on the offer.

With competitive debenture distribution and issuance rates, EDP has divided the operation into three series. The first one will be used for an early mandatory redemption of the 1st Issuance of Promissory Notes, issued in March this year. The other two series will be channeled to the construction of the São Manoel (Mato Grosso/Pará) and Cachoeira Caldeirão (Amapá) hydroelectric plants.

"The good progress of the works demonstrates why the market trusted the company debenture issuance," says Miguel Setas. São Manoel is still in its early construction stages, while Cachoeira Caldeirão has entered the final stage. As with the Jari Power Plant in 2014, Cachoeira Caldeirão is likely to be concluded before the deadline. "Implementation excellence has become one of the values most strongly associated with EDP," Setas points out.