Eletrobras pays back Petrobras

Eletrobras pays back Petrobras

Debt Economy & Policy Corporate & Sovereign Strategy Regulation Brazil Energy Electricity

Brazil's Eletrobras said it has paid BRL1.28bn ($322m) in debt it owed to the state-owned energy company Petrobras, using the money it raised from the sale of debentures in May this year.

The power company earned BRL5bn from the four-part debenture deal in the local market with maturities from three to 10 years. It printed BRL1.1bn in 2022 notes at 70bp over the DI interbank lending rate, BRL2.2bn in 2024s at 100bp over the DI, BRL1bn in 2026s at 120bp over the DI and BRL700m in 2029s at 518bp over the IPCA consumer price index.

Eletrobras said it still owed BRL9.56bn to Petrobras after the sale of its distribution businesses.

The company said last week that President Jair Bolsonaro had authorized studies on the possible privatization of Eletrobras. Congress would first have to approve the sale of the state-owned company.

Shares in Eletrobras dropped 2.11% to close at BRL41.79 on Monday.

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