Global Power Generation (Naturgy Group) completes two bond issues in Brazil

Wednesday, October 31, 2018

The issue, for a combined amount of R $ 265 million, will be used to reimburse expenses, costs and debts incurred for the construction of the Sertão I Solar and Sobral I Solar plants with a joint generation capacity of 68 MW. This is two of the first emissions with these characteristics completed in Brazil for the financing of photovoltaic parks although it is a usual way of financing wind and transmission projects.

The Sobral Park issuance was awarded in its entirety to a single buyer for an amount of 135 million reais, a term of 15 years and three months and a spread on the benchmark index (NTN-B) of 195 basis points.

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The corresponding to Sertão, for an amount of 130 million BRL, was awarded with a spread over NTN-B at 120 basis points. The term was set at 14 years and three months.

Both issues, without guarantee from the parent company, were rated AAA (local) by the Fitch rating agency. Banco Santander and Itaú have acted as underwriters.

With these issues, Naturgy optimizes the financial structure in accordance with the commitments acquired in its strategic plan, maximizing financing in its own businesses, diversifying the sources of financing with recourse to the capital markets and obtaining a natural exchange rate hedge. Debt the projects in the same currency in which the income is generated.

This Naturgy press release was published using an automatic translation system.