On March 31, 2022, gross debt reached R$ 7,806.8 million, an increase of R$ 447.2 million (6.1%) from the balance on December 31, 2021, mainly due to: (i) release of R$ 227.0 million in March 2022 after a new loan agreement with the Brazilian Economic and Social Development ("BNDES"); and (ii) the inclusion of leasing operations in the Company's debt following ANEEL’s adoption of CPC 6 in its electricity sector accounting manual, which came into effect in January 2022. The increase in debt is also due to the adjustment of the balances based on macroeconomic indicators to which a bulk of the Company's liabilities are indexed, mainly IPCA and DI.

The 12.3% increase in cash and cash equivalents of ISA CTEEP and 100% subsidiaries in 1Q22 reflects the disbursement of the new contract signed with BNDES and the cash generation of operating subsidiaries.

Excluding the cash and cash equivalents of non-consolidated subsidiaries, the Company’s net debt stood at R$7,017.5 million in March 2022, as against R$ 6,656.9 million in December 2021, while the Net Debt/Adjusted EBITDA ratio ended 1Q22 at 3.06 times.

The company duly complies with the covenants and requirements for all of its issues. For 2022, the most restrictive Net Debt/EBITDA ratio is 3.5x, for the 5th issue of debentures. 0} According to criteria for calculating the indicator for this issue, the indicator is 2.75x in 1Q22. 0} Details on financial indicators and their calculation criteria are available in Attachment VII.

Average cost of consolidated debt was 15.0% p.a. on March 31, 2022 vs. 13.04% p.a. on December 31, 2021. The increase is mainly due to the variation in the macroeconomic indicators used as debt indexers. During the period, accumulated IPCA in 12 months rose 520 bps and annualized CDI rose 900 bps. Considering the accumulated IPCA in recent months, real average cost³ of debt is 3.77%. Average term of the Company's consolidated debt on March 31, 2022 was 6.6 years.

3 Ratio between (i) Average nominal cost; and (ii) IPCA in the last 12 months.

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Gross Debt Amortization Schedule
(BRL million)

Gross Debt Amortization Schedule
(BRL million)

Debt Contracting and
Indexing 03/31/2022

Debt Breakdown
6/30/2020
 

  
Issue Total offering Nominal Unit Value Series Issue Maturity Remuneration Documents


5th Issue

 
BRL 300.0 million BRL1 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)
7th Issue BRL 621.0 million BRL1 thousand Single 02/05/2018 04/15/2025
IPCA + 4.70  per year
8th Issue BRL 409.0 million BRL1 thousand 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 BRL1 thousand Single 2/10/2021 7/15/2044 IPCA+5.07% p.a.
11th Issue BRL950 million BRL1 thousand Two Series 10/28/2021 1st serie: 10/15/2031
2nd serie: 10/15/2039
1st Serie: IPCA + 5.77% p.a.
2nd Serie: IPCA + 5.86% 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 March 31, 2022.