EDP Energias do Brasil : Installation License Granted for EDP Transmissão MA II S.A. Transmissi…

INSTALLATION LICENSE GRANTED FOR EDP TRANSMISSÃO MA II S.A. TRANSMISSION LINE

São Paulo, February 06th, 2019 - EDP - Energias do Brasil S.A. ("EDP" or "Company") (B3: ENBR3) informs its

shareholders and the market in general that the Secretaria de Estado do Meio Ambiente e Recursos Naturais (SEMA)1 has granted, on February 01th, 2018, the Installation License ("IL") for the Company EDP Transmissão MA II S.A. referring to the 230 KV Transmission Line SE Miranda II - SE São Luis II and São Mateus IV Substation, in the state of Maranhão, corresponding to lot 11 of Transmission Auction nº 05/2016.

The acquisition of the IL was expected for February, 2020, as per the schedule considered by ANEEL2, representing an anticipation of the construction works in 12 months.

As previously communicated by the Company, EDP has signed on December 28th, 2018, the Financing Agreement with Banco do Nordeste do Brasil S.A. ("BNB"), in order to provide a credit facility of R$ 124.5 million. The issuance cost is IPCA + 2.57%3 and IPCA + 2.18%², considering the possible bonus of default4. This corresponds to, approximately, 80% of the nominal CAPEX (by August/2018) or approximately 70% of the total CAPEX, estimated in R$ 182.5 million.

In comparison to the return presented in the scope of the auction, the financing structure combined to the anticipation of the project allows it to extrapolate the upper band, bringing gains in IRRa and NPVa.

Miguel Nuno Simões Nunes Ferreira Setas

CEO and IR Director

• 1 State Bureau of Environment and Natural Resources

• 2 National Agency of Electrical Energy

• 3 This rate doesn't consider the costs related to ancillary obligations.

• 4 Solvent customers of the Banco do Nordeste, which manages the FNE, receive a discount of 15% on the fixed-rate portion of the Long-Term Rate (TLP), in the financing paid up-to-date.

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