Eneva sells R$2.4 billion in debentures to extend debt

Brazilian energy company Eneva concluded the first stage of a liability management plan by selling debentures from its 12th issuance held in treasury for a total value of BRL 2.4 billion to financial institutions.

The company stated that the entire proceeds from the sale will go toward prepaying shorter financial obligations linked to the CDI rate. The sold debentures carry an interest rate of the IPCA inflation index plus 8% per year, mature on August 15, 2036, and feature an amortization schedule split across three annual installments starting in the eighth year.

In the initial allocation phase finished on Tuesday, September 22, Eneva prepaid roughly BRL 1.4 billion in outstanding debentures and cancelled the repurchased securities. Once all proceeds are deployed, the transaction extends the average maturity of the targeted debt from 2.6 years to 9.0 years while lowering its weighted average cost.

According to Eneva, the move aligns its liabilities with inflation-indexed revenue from thermal generation and gas supply contracts, strengthening its capital structure to support long-term corporate investments.