EDP will leverage nearly 100% of the Santa Catarina Transmission Line | EDP Brasil

EDP, a company that operates across all segments of Brazil’s electrical sector, has concluded a public offer for distribution of BRL 1.2 billion in simple debentures issued by EDP Transmissão Aliança SC S.A (“EDP Aliança”). This is one of the largest ever transactions undertaken to finance a project in the electrical sector.

The funds raised will cover 99.8% of the investment required to build 484.5 kilometers of energy transmission lines in the state of Santa Catarina, which EDP successfully tendered for in partnership with Celesc Geração S/A in 2016. These conditions should yield returns to shareholders exceeding the upper profitability limit that was initially forecast. This transaction reinforces EDP’s strategy to diversify competitive sources of financing, as it aims to improve returns for its projects and for shareholders while mitigating risks.

At the construction designs for what is known as Lot 21 received Provisional Environmental License No. 8965/2018 on October 18, while approval of the Installation Permit, filed in July, is still pending. EDP Aliança is a joint venture set up to develop, build and operate the transmission line in which EDP has a 90% stake and Celesc Geração S.A. (“Celesc”) holds the remaining 10%.

About EDP Brazil

EDP has over 20 years’ experience and is one of the biggest private-sector companies operating across the entire value chain. The Company has over 10,000 direct and indirect staff and is involved in Energy Transmission, Sales and Services. It also operates 15 hydro power plants and one thermal power station. Its Distribution area serves around 3.4 million customers in Sao Paulo and Espírito Santo. The Company recently acquired a stake in CELESC, from Santa Catarina. In Brazil, the company is noted for its Innovation, Governance and Sustainability and has been included in the B3 Business Sustainability Index (BSI) for 12 consecutive years.