On September 30, 2020, gross debt reached BRL3,259.0 million, an increase of BRL15.1 million from the balance on December 31, 2019, mainly due to the funding operation (CCB) carried out in 2Q20. In 3Q20, the debts under Resolution 4,131 were paid. This foreign-currency debt was hedged.

Pursuant to CPC 06 (R2), starting from January 2019, the Company started recognizing obligations for future payments for all leasing agreements, except short-term and/or low-value agreements. In 3Q20, BRL57.2 million was added to IFRS gross debt, related to the Company’s leases. As such, IFRS gross debt totaled BRL3,316.2 million.

The regulatory accounting did not change. The increase in cash and cash equivalents of ISA CTEEP and its subsidiaries 100% owned in 3Q20 reflects the funding to strengthen the Company's cash position. Excluding the cash and cash equivalents of non-consolidated subsidiaries3 , the Company’s net debt stood at BRL2,246.1 million at the end of September 2020, as against BRL2,546.6 million in December 2019, while the Net Debt/Adjusted EBITDA ratio closed 3Q20 at 0.9x

The company duly complies with the covenants and requirements for all of its issues. For 2020, the most restrictive Net Debt/EBITDA ratio is 3.0.  

Average cost of consolidated debt was 6.03% p.a. on September 30, 2020, compared to 7.46% p.a. on December 31, 2019, due to the decline in IPCA index between the periods. IPCA is the company’s main index for debt and revenues. Average term of consolidated debt on September 30, 2020 was 3.7 years.

Gross Debt Amortization Schedule
(BRL million)

Gross Debt Amortization Schedule
(BRL million)

Debt Breakdown
12/31/2020

Debt Breakdown
6/30/2020

From July to December 2020, debt amounting to BRL1.2 billion is expected to mature, which mainly consists of debt pursuant to Law 4,131/62 and the 6th issue of debentures.


  
Issue Total offering Nominal Unit Value Series Issue Maturity Remuneration Documents
4th Issue BRL 148.3 million BRL 1 thousand Single Series 07/15/2016 07/15/2021 IPCA + 6.04%


5th Issue

 
BRL 300.0 million BRL 1 thousand Single Series 02/15/2014 02/15/2024 IPCA + 5,04% per year (Portuguese Only) (Portuguese Only) (Potuguese Only) (Portuguese Only) (Potuguese Only) (Potuguese Only) (Potuguese Only)
(Portuguese Only)
Report Rating (FITCH)
(Potuguese Only)
6th Issue BRL 350 million BRL 1,000 Single 12/13/2017 12/13/2020 105,65% of CDI per year
7th Issue BRL 621.0 million BRL 1,000 Single 02/05/2018 04/15/2025
IPCA + 4,70  per year
8th Issue BRL 409.0 million BRL 1,000 Single 12/20/2019 12/15/2029 IPCA + 3.50 per year
9th Issue BRL1,600.0 million BRL1 thousand Two series 12/7/2020 1st serie: 11/15/2028
2nd serie: 5/15/2044
1st Serie: CDI +2.83% p.a.
2nd Serie: IPCA + 5.30% p.a.
10th Issue BRL672.5 million BRL Single 2/10/2021 7/15/2044 IPCA+5.07% p.a.
  Debenture
Issue Total offering Nominal Unit Value Series Issue Maturity Remuneration Documents
2nd Issue BRL 350 million BRL 10 thousand Single 03/18/2013 03/18/2025 IPCA + 5.5% per year
  Debenture
Issue Total offering Nominal Unit Value Series Issue Maturity Remuneration Documents
1st Issue BRL 1.6 billion 1.000 Single 12/15/2019 12/15/2043 (24 years) IIPCA + 4.9982% per year

Updated on February 22, 2021.