Companhia de Geracao de Energia Eletrica Tiete

Active

Prospective

Companhia Energetica de Sao Paulo (CESP) was the last of the three Sao Paulo state-owned electric utilities - after Electricidade de Sao Paulo (Eletropaulo) and Companhia Paulista de Forca e Luz (CPFL) - to be fully privatized. In 1999, there was a partial spin-off of CESP - Companhia Energética de São Paulo. This spin-off created three caompanies: Companhia de Transmissão de Energia for transmission, Companhia de Geração de Energia Eletrica Paranapanema for generation, and Companhia de Geração de Energia Eletrica Tietê (CESP - Tiete). CESP - Tiete is a 2,644 MW generation company with nine hydro generating plants mainly located along the Tiete and Pardo Rivers, in the state of Sao Paulo, Brazil. On October 27, 1999, AES Corporation won a bid to purchase a controlling interest in CESP - Tiete for US$ 486 million. The company acquired a 61% of the voting stock and a 39% of the total capital stock of the company. Approximately US$ 183 million of project financing was to be provided by BNDES, the Brazilian development bank, and approximately US$303 million of the remaining investment in the company was to be paid by AES Corporation. The concession contract was designed to extend 35 years for the privatized units. After the privatization CESP - Tiete had its named changes to AES Tiete. In June 2005, some of Tiete's shareholders -Banespa, Santander and Nossa Caixa- sold their 28% stake in a public share offering that was worth US$383.75 million. In May 2001, AES Tiete announced it had closed a US$ 300 million 15-year bond offering at 11.50%. The proceeds would be used to refinance the company's debt with BNDES. After interim debt restructuring in 2002, AES was unable to meet payment for its scheduled maturities and in early 2003 their loans to BNDES entered in default (US$1.2 billion). After several months of negotiations with BNDES, a restructuring plan - a debt-for-equity deal - was proposed whereby a new holding company, Brasiliana Energia S.A., would comprise AES 50.01% of common shares and BNDES 49.99% common shares and non-voting preferred shares (resulting in BNDES holding 53.84% total equity of Brasiliana Energia S.A.). The agreement called for the transfer of AES' stakes in AES Uruguaiana, AES Tiete and Eletropaulo to the holding company Brasiliana Energia and an AES payment of US$90 million in cash upon signing the agreement. In December 2003, BNDES and AES group signed a restructuring agreement and the transfer of AES Tiete to the holding Brasiliana occured in January 2004. As of January 2004, AES was holding 24.25% of the total capital of AES Tiete, BNDES held 28.29% and free-floating shares represented 47.45% of the company's capital. In December 2015, AES Tiete issued US$ 90.5 million (BRL 301.76 million) in long-term bonds to finance its investment expenditures. "A estimativa de CAPEX para 2006 é de R$ 50,5 milhões..." http://aestiete.infoinvest.com.br/static/ptb/investimentos.asp

Energy

World Bank Group

Project

Hydro, Cable car, Telecommunications, Power Transmission, Government, Power Generation (CCGT), Automotive, Commercial