ENGIE, the largest private sector energy company in Brazil, has raised a pioneering new line of credit worth R$ 65 million for the Uberl\u00e2ndia (state of Minas Gerais) public lighting PPP (Public-Private Partnership), to be managed by the Company, through the medium of incentivized debentures.
\nThe issue was the first in the country which involved a project in the Public Lighting segment with ENGIE being pioneer in successfully classifying the operation among the Ministry of Regional Development\u2019s qualifying infrastructure projects \u2013 a necessary stage for issuing this type of security in the market.
\n\u201cWe are very satisfied to announce that our issue of the Uberl\u00e2ndia PPP was the first in the sector in Brazil. The conditions for the transaction are expected to serve as a benchmark for future emissions in this market. They open up a new source of financing for projects which are very important to Brazilian cities whether from the aspect of expanding the lighting networks through digitalization or through the creation of a base for installation of Smart City networks\u201d, remarked Maur\u00edcio B\u00e4hr, CEO of ENGIE Brasil.<\/p>\n

The Public Lighting systems may also embrace other services such as surveillance cameras and high speed internet, among others. Consequently, such projects are important drivers of solutions for Smart Cities.<\/p>\n

INVESTMENT<\/p>\n

Resources raised from the debenture issue will be used to underscore the investment plan for the Uberl\u00e2ndia PPP \u2013 worth a total of R$ 90 million. As a result, some 70% of the amount to be injected in the project up to the middle of 2023 will be covered by this debenture issue.<\/p>\n

Fitch Ratings, one of the most highly regarded credit rating agencies in the world, has assigned Long-Term ‘AAA (bra)’ rating on the national scale with a stable outlook. The transaction, in a single series, matures in January 2034 and was managed by XP.
\nThe final rate determined via bookbuilding was the Extended National Consumer Price Index (IPCA) plus 6.45%.
\n\u201cThe rating reflects the current investment phase of ENGIE\u2019s Uberl\u00e2ndia concession, the risk of cost overruns and delays being mitigated by the corporate guarantee of ENGIE. It is also a reflection of the stable and predictable profile of the revenues [from the PPP]\u201d, Fitch pointed out in an announcement.
\nUberl\u00e2ndia PPP
\nThe PPP agreed between ENGIE and the Uberl\u00e2ndia city government covers the concession for the modernization, efficiency upgrading, expansion, operation and maintenance of the municipal public lighting complex. The long-term partnership also provides for the remote management of the lighting of the city\u2019s principal streets (tele-management); flood lighting of 12 public spaces; and the expansion in the number of light poles and lamps for meeting the organic growth of the urban area. ENGIE, which enjoys wide experience in the segment internationally, won the bidding for the concession at the end of 2019.<\/p>\n","protected":false},"excerpt":{"rendered":"

Operation for the public lighting project in Uberl\u00e2ndia raised R$ 65 million and received Ministry of Regional Development registration<\/p>\n","protected":false},"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-67346","imprensa","type-imprensa","status-publish","format-standard","hentry","tipo-release-solutions"],"acf":[],"yoast_head":"\n