Cemig Wraps up Jumbo Local Debt

Brazilian utility Cemig, has received final approval for its BRL2.7bn debenture issue, wrapping up the biggest local deal of the year so far. A BRL1.6bn 2012 tranche pays the DI benchmark plus 0.90%, while a BRL1.1bn 2015 piece with a 3-year grace period pays 7.67% over the ICPA inflation benchmark. Proceeds will be used to refinance a BRL2.7bn promissory note placed in October at DI plus 113%. Banco do Brasil, Caixa Economica Federal, HSBC, Votorantim, BES and BTG managed the deal through the Cemig Geracao e Transmissao unit. It was rated AA on a national scale. The offer is the largest in Brazil’s domestic market since BRL3bn from Telemar in April 2009, according to regulatory data.