Cemig talks divestment, bond issue
The Brazilian power company aims to sell $2bn in assets and maintains plans to issue $1bn in cross-border bonds
Brazil's Cemig has announced plans to sell 10 assets worth
BRL6.56bn ($2.02bn), according to a securities filing. The
power company plans to raise at least BRL3.28bn by Q1 2018 in
order to reestablish financial equilibrium.
The announcement comes after Cemig held investor meetings in
Europe and the US for a potential $1bn bond sale. Investors
highlighted the need for more clarity at the time on the firm's
divestiture plans, one debt capital markets banker said.
Cemig could potentially raise $1bn in cross-border bonds in
July, after the company delayed plans last month.
The company is also considering the European bond market,
but the same DCM source said Cemig was likely to get better
terms on cross-currency swaps back to reais if it did dollar
The company, absent from the cross-border bond market since
the 90s, got board approval to issue up to $1bn in seven-year
bonds through subsidiary Cemig GT.
Bradesco, Citi, Deutsche Bank and Itau BBA led the company's
investor meetings last month.