AES TIETÊ ENERGIA S.A.

Public Company CNPJ/MF 04.128.563/0001-10

NIRE 35.300.183.550

MATERIAL FACT

AES TIETÊ ENERGIA S.A. (B3: TIET11, TIET3, TIET4) ("AES TIETÊ" or "Company"), in furtherance to

article 157, paragraph 4 of Law No. 6,404, as of December 15, 1976 and amendments thereto, and Instruction No. 358, of January 03, 2002 and its amendments thereto by the Brazilian Securities and Exchange Commission ("CVM"), hereby informs its shareholders and the market in general that, on this date, the Company executed with Cobra do Brasil Serviços, Comunicações e Energia S.A. ("Cobra do Brasil"), an investment agreement that predicts the following operations (collectively, "Operations"):

  1. subject to compliance with specific precedent conditions, the Company may make an investment in an amount equivalent to R$ 470 million in debentures to be issued between September of 2017 and March of 2018, by 5 (five) specific purpose entities, all of which are subsidiaries of Cobra do Brasil ("Debentures" and "SPE's", respectively). The funds from the Debentures shall be used by the SPE's in order to fund the construction by Cobra do Brasil for photovoltaic solar plants in the City of Guaimbê, State of São Paulo ("Bauru Solar Complex");

  2. subject to compliance with specific precedent conditions throughout the construction period, including the obtainment of applicable regulatory approvals, among other factors, the satisfactory negotiation of definitive documents between the parties involved, the Company expects to make an additional investment of R$ 180 million between the acquisition of Cobra do Brasil's stake in the SPE's and by increasing the capital of the SPE's after the tansaction's Closing.

The authorizations to implement the Bauru Solar Complex were granted to the SPE's after the 6th Reserve Energy Auction held on October 31, 2014, with contracted energy for 20 (twenty) years, at the average price of R$ 218.85/MWh, with a total forecast capacity of 180 MWp (150 MWac) and expected commercial operation date for May of 2018.

The total amount agreed upon for the Operations of R$ 650 million is based on all costs involved in implementing Bauru Solar Complex , as specified on items i and ii, and may undergo the usual adjustments in this type of operation, including adjustments of working capital and net debt.

This investment agreement shall contribute to AES TIETÊ's growth strategy comprising 50% of its EBITDA by 2020 with non-hydraulic sources with long-term regulated electrical energy purchase agreements, reiterating its shareholders' commitment to nationwide investment. Additionally, the Bauru Solar Complex will expand in 6% of its current installed capacity in the State of São Paulo.

The Company shall keep the market and its shareholders posted on subsequent facts related to the Operations.

Barueri, September 25th, 2017

AES TIETÊ ENERGIA S.A. Francisco Jose Morandi Lopez

Director Vice-President and Investor Relations Officer

AES Tietê Energia SA published this content on 25 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 September 2017 22:24:09 UTC.

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