The issue, for a total amount of 265 million Brazilian Reais, will be used to repay expenses, costs and debts incurred for the construction of the Sertão I Solar and Sobral I Solar plants, which have a joint power generation capacity of 68 MW. These are two of the first issues with these features carried out in Brazil for the financing photovoltaic plants, although it is a common way of financing wind-power and transmission projects.
The Sobral plant issue was awarded in full to a single purchaser for 135 million Reais, a period of 15 years and 3 months and a spread in the reference index (NTN-B) of 195 basis points. The Sertão plant was awarded a spread in the NTN-B reference index of 120 basis points for 130 million Reais. The period was set at 14 years and 3 months. Both issues, with no guarantee of the original, received an AAA rating (local) from the rating agency Fitch. Banco Santander and Itaú have both acted as underwriters.
With these issues, Naturgy optimises the financial structure in accordance with the commitments acquired in their strategic plan. This maximises the financing in the businesses themselves, diversifies the financing sources using the capital markets and obtains a natural exchange rate cover against indebting the projects in the same currency as the income.