AES Units Aim for Brazil DCM

Two units of Brazilian generator Companhia Brasiliana de Energia (CBE) plan to raise funds via the sale of BRL1.7bn in domestic bonds. Eletropaulo Metropolitana aims to sell BRL400m in 2014 bonds at the DI benchmark plus up to1.25%, with the rate to be determined during bookbuilding. It also plans to sell BRL400m in 2020s at DI plus 1.5%. Meanwhile, AES Tiete is preparing to sell BRL900m in 5-year bonds at DI plus up to 1.20%. “These debentures should ensure a 2-year extension of the current amortization period [at Tiete], which is indeed very positive,” says Itau in a research note. The issuers do not indicate lead managers. Proceeds will go to pay debt and finance investment plans. CBE is owned by BNDES and US energy company AES.