Aug 12, 2015

• Operation valued at R$ 370.6 million marks the launch of the Fixed-Income Market Stimulus Program. The company must issue fixed-income securities in up to 12 months

The Brazilian Development Bank (BNDES) approved the first credit operation within the scope of the Fixed-Income Market Stimulus Program. The Bank will finance up to R$ 370.6 million of the Comgás’ investment plan for  the 2015-2017 period, and the credit will be available to the company once it has complied with certain conditions, such as the issuance of debentures. The company should issue fixed-income securities in the market within a 12-month period as of the date the financing contract, still undergoing the final stages of negotiation, is signed.

The operation is entirely new as it reduces the cost of financing from the BNDES by issuing debentures to complement resources invested in the project. With this, Comgás will have access to a larger portion of BNDES credit at Long-term Interest Rates (TJLP), the lowest financial cost the Bank offers. On the other hand, the company may choose a smaller portion of financing based on market rates, reducing the final credit cost.

The Program was launched in June 2015 to encourage large companies to issue fixed-income securities linked to investment projects financed by the BNDES and, thus, gain access to a larger portion of BNDES credit using the TJLP. In addition to helping develop the capitals market, the BNDES will stimulate private savings to assume a larger stake in long-term financing operations.

Resources will be earmarked to expand and explore the natural gas distribution network as well as program and software technology (IT) to increase efficiency and production; as well as expand operating bases and customer support, in addition to social projects in the community.

Over the next two years, the BNDES expects to approve between 10 and 15 projects using the same model, aggregating between R$ 3 billion and R$ 4 billion in new fixed-income securities in the market.