Taesa Lines Up Banks

Cemig’s Transmissora do Atlantico de Energia Eletrica (Taesa) is most likely to hire Bradesco, Citi, and Santander to manage an international bond transaction as it seeks to finance the purchase of a 50% stake in Abengoa Brasil, CFO Luiz Fernando Rolla tells LatinFinance. “We haven’t finished the list yet as we are considering other banks,” he adds. The electrical transmission company is seeking BRL1.2bn ($703m), though it is still evaluating whether it will opt for a BRL or USD-denominated transaction. “A global BRL is one of the preferred alternatives, though if we do a dollar deal we have to consider hedging costs associated with that transaction,” he says. Rolla estimates 30 days before the company will commence a roadshow to meet with investors. 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 ($673m) in cash to Cemig. Considered one of the largest electric power transmission companies in Brazil, Taesa was established in 2006 as a holding company under the name Terna Participacaoes. Taesa last came to market in 2010 when it raised BRL600m through a 2-tranche domestic debenture offering, via Banco do Brasil, BTG Pactual, Citibank and HSBC.