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Brazil's Eletronorte signs debt confession instrument with AmE [free access]

July 19, 2021

Brazilian Centrais Elétricas do Norte do Brasil S.A. (Eletronorte), a subsidiary of state-owned power utility Elétricas Brasileiras S.A. (Eletrobras), has signed a Confissão de Dívidas or Debt Confession Instrument (ICD) of BRL808.75 million with Amazonas Energia SA (AmE), aimed at renegotiating the debt held by AmE with Eletronorte.

 

The debt is related to operation and maintenance (O&M) and power invoices of Independent Power Producers (IPP) for assets located in Manaus. These invoices had expired between November 2020 and July this year.

 

The ICD has a 12-month grace period for interest and principal, ending on June 30, 2022, an amortisation period of 60 months, and a rate of Certificado de Depósito Interbancário or Brazilian interbank deposit (CDI) + 2.75% per year, in guarantee, for the receipt of estimated over-contracting and short-term market credits of approximately BRL73 million and BRL80 million, respectively, which may be received by AmE.

 

This is the fourth ICD with AmE, the first three, which were agreed upon by Amazonas Geração e Transmissão S.A. (incorporated by Eletronorte), corresponded to a total of BRL2,313 million cumulatively.

 

(BRL1=USD0.19)