Notice to the Market

EDP Transmissão MA I Financing Agreement

São Paulo, July 10th, 2019 - EDP - Energias do Brasil S.A. ("EDP" or "Company") (B3: ENBR3) hereby informs its shareholders and the market in general that it was signed, on June 28th, 2019, the Financing Agreement between its subsidiary EDP Transmissão MA I and Banco do Nordeste do Brasil S.A. ("BNB"), in order to provide a credit facility of R$ 252 million (two hundred and fifty two million reais), to be provided with funds from the Fundo Constitucional de Financiamento do Nordeste ("FNE"), with payment term of 24 (twenty four) years.

This corresponds to, approximately, 75% of the nominal CAPEX or approximately 65% of the total CAPEX. The issuance cost is IPCA + 2.54%1 and IPCA + 2.16%1, considering the possible bonus of default2. In comparison to the return presented in the scope of the auction, the financing structure allows to extrapolate the range of IRR of 12% to 14%, according to assumptions disclosed on that date.

EDP MA I is responsible for the development, construction and operation of Lot 07 of Transmission Auction No. 05/2016 and had its Previous Environmental License issued on April 26th, 2019. It is currently awaiting the approval of the Installation License for the beginning of the construction works.

This operation reinforces the strategy of diversifying competitive sources of financing, aiming to mitigate risks and obtain better returns for its projects and shareholders.

Miguel Nuno Simões Nunes Ferreira Setas

Chief Executive and Investor Relations Officer

  1. This rate doesn't consider the costs related to ancillary obligations.
  2. 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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EDP - Energias do Brasil SA published this content on 10 July 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 July 2019 22:42:15 UTC