Cemig’s Taesa Targets Global BRL

Cemig’s Transmissora do Atlantico de Energia Eletrica (Taesa) may mandate banks as soon as this week as it looks to raise BRL 1.3bn ($814m) in the international markets, preferably through a global BRL bond, says a company spokesperson. The Brazilian electrical transmission company is seeking BRL1.2bn to acquire a 50% stake in Spanish-owned Abengoa Brasil with funding due next month. Remaining proceeds will be used to extend its debt profile. In June, Spanish engineering company Abengoa announced its intention to sell a 50% stake in four transmission concessions and 100% of concession company NTE in Brazil for EUR485m in cash to Cemig. While Taesa is strongly leaning towards a Global BRL, it is also evaluating the market for a potential USD bond. Considered one of the largest electric power transmission companies in Brazil, Taesa was established in 2006 as a holding company under the name Terna Participacoes. The pending acquisition is expected to get approval by Brazil’s Cade within the next couple of months. Taesa last came to market in 2010 when it raised BRL600m through a 2-tranches debenture offering via Banco do Brasil, BTG Pactual, Citibank and HSBC. This came after the company had carried out an IPO on the Sao Paulo Stock Exchange in October 2006. Majority shareholders are Fundo de Investimentos em Participacoes Coliseu and Cemig, which hold 38.59% and 56.69% stakes respectively.