The Company’s low leverage will provide a scope for financing of the growth cycle forecast for the next few years. In the second quarter of 2018, gross debt posted an increase following the 7th issuance of green bonds (debentures) for R$ 621 million, expiring in 2025. Net debt also reported an increase of 27.9% in the period due to the payment of interim dividends.

The Company is in compliance with established covenants and requirements for all issues. For the years 2018, 2019 and 2020, the Net Debt/EBITDA index was of 3.0x.

The average cost of consolidated debt was 7.86% p.a. on June 30, 2018, slightly below the costs reported for 1Q18. The IPCA inflation index for the past 12 months was 2.86% and the annualized CDI (Interbank Deposit Rate) for June was 6.39%. The average term of the consolidated debt on June 30, 2018 was of 3.6 years.

On May 04, 2018, the Company concluded its 7th debenture issuance amounting to R$ 621 million, expiring in 2025. The amount will be restated at the IPCA inflation index. On top of the corrected amount of the debentures, an annual interest rate of 4.70% will be applied on the basis of a 252-day year, calculated exponentially and cumulatively pro rata temporis from the first subscription and paying in date until effective payment of principal. Remuneration will be paid semi-annually as from issue date, always on the 15th day of the months of October and April with the first payment on October 15, 2018 and the last, on the expiry date of the debentures on April 15, 2025.

This is the transmission sector’s first issue to be classified under the Green Bond category in the Brazilian Capital Markets. The issue is based on the Company’s satisfactory socio-environmental performance, evaluated by an independent specialized consultancy, and reflecting ISA CTEEP’s contribution to renewable energy transmission.

The issuance’s resources are being deployed as capital injections at ERB1, IE Aguapei, IE Aimorés, IE Itapura, IE Itaquerê, IE Itaúnas, IE Paraguaçú and IE Tibagi - the result of successful bids at auctions held between October 2016 and April 2017, held between 2017 and 2019 by means of capital contribution. With this issue, ISA CTEEP reinforces its strategy of seeking competitive sources of finance in addition to its commitment to sustainability.

Debt Amortization Schedule (BRL million)

Debt Breakdown


 
Promissory Notes Total offering Nominal unit value Series Issue Tenor Remuneration Documents
1st Issue R$ 200 million R$ 1 million Single 12/9/2008 I80 days from Issue date 120% of CDI -
2nd Issue R$ 200 million R$ 1 million Single 04/24/2009 I80 days from Issue date 119.5% of CDI -
3rd Issue R$ 200 million R$ 500 thousand Single 07/17/2009 I80 days from Issue date 106.5% of CDI
4th Issue R$ 200 million R$ 5 million Single 01/17/2011 360 days from Issue date 100% of CDI + 0.4% per year

-

5th Issue R$ 300 million R$ 10 million Single 07/11/2011 360 days from Issue date - CDI + 0.48 per year
6th Issue R$ 400 million R$ 1 million Single 01/04/2012 360 days from Issue date 104,9% of CDI -
 
Debentures Total offering Nominal Unit Value Series Issue Maturity Remuneration Documents
7th Issue R$ 621 million R$ 1,000 Single   7 years from Issue Date
IPCA + 4,70  per year
6th Issue R$ 350 million R$ 1,000 Single 12/13/2017 36 months from Issue date 105,65% CDI Rating


5th Issue

 
R$ 300.0 million R$ 1 thousand Single Series 02/15/2014 02/15/2024 IPCA + 5,0373% per year (Portuguese Only) (Portuguese Only) (Potuguese Only) (Portuguese Only) ​(Potuguese Only) ​(Potuguese Only) (Potuguese Only)
(Portuguese Only)​​
​​​​​Report Rating (FITCH)
(Potuguese Only)
 
4th Issue
 
R$ 148.3 million R$ 1 thousand Single Series 07/15/2016 07/15/2021 IPCA + 6.04%             (Potuguese Only)           (Potuguese Only)
 
3rd Issue R$ 500 million R$ 10 thousand Single Series 12/26/2013 12/26/2018 116% of DI
1st Issue R$ 491 million R$ 10 thousand 1st Series 12/15/2009 12/15/2014 100% of CDI + 1.30% per year
1st Issue R$ 57,6 million R$ 10 thousand 2nd Series 12/15/2009 12/15/2017 100% of IPCA + 8.10% per year
 
Promissory Notes Total offering Nominal Unit Value Series Issue Tenor Remuneration Documents
1st Issue R$ 70 million R$ 5 million Single Date to be determined 90 days 100% of CDI + 0.34% per year -
 
Promissory Notes Total offering Nominal Unit Value Series Issue Tenor Remuneration Documents
1st Issue R$ 180 million R$ 5 million Single 06/08/2011 120 days 100% of CDI + 0.40% per year -

2nd Issue

R$ 290 million R$ 10 million Single 04/27/2012 120 days 106,5% of CDI
3rd Issue 720 million R$ 10 million Single 09/17/2012 120 days 106,5% of CDI
 
Debentures Total offering Nominal Unit Value Series Issue Maturity Remuneration Documents
1st Issue R$ 420 million R$ 1 million Single 09/15/2011 09/15/2012 106,5% of CDI per year
2nd Issue R$ 350 million R$ 10 thousand Single 03/18/2013 03/18/2025 IPCA + 5.5% per year
 
Debentures Total offering Nominal Unit Value Series Issue Maturity Remuneration Documents
1st Issue R$ 380 million R$ 1 thousand Single 10/15/2012 04/15/2014 106,5% of DI
 

Updated on September 10, 2018.