Market Annoucement


We hereby inform our shareholders and the market in general that the Board of Directors of Eletrobras, in a meeting held today, approved the operation of funding, guaranteed by the Federal Government, in the amount of R$ 6.5 billion, to be disbursed in three (3) tranches by 2015. These amounts will be applied pursuant to the Eletrobras Business and Management Master Plan 2014-2018, approved by the Board, on March 27, 2014, as disclosed to the market through a material fact, and the budget s approved for the Eletrobras companies.
The mentioned funding was done by bookbuilding process, in which were invited several financial institutions, coordinated by the Banco do Brasil.

For the amount of R$ 6.5 billion, Caixa Economica Federal and Banco do Bra sil, offered firm proposal of respectively, R$ 2.5 billion and R$ 4.0 billion, including the following financial conditions:

Main Characteristic

Borrower: Eletrobras Creditors: Banco do Brasil and Caixa Econômica Federal Value: R$ 6,5 billion in 3 tranches Total Term: 8 years Grace Period of the Principal: 2 years Disbursement: Until January,2015 Amortization System: CAS Payment of Capital: Monthly installments after the grace period Payment of interest: Monthly payments Guarantee: Federal Government Financial Cost: 119,5% of CDI Structuring Fee 0,75% Commitment fee 0,60% a.a on undisbursed funds Administrative Agent R$ 46 mil per year

The operation will be made by the Financing Agreement and "Cédulas de Crédito Bancário" to be issued by Eletrobras for each Disbursement Agreement. This operation is subject to approval by the relevant government agencies, according to the legislation in force.
Rio de Janeiro, July 21, 2014.

Armando Casado de Ara ujo

CFO and Invertor Relations Office r

ELET3 & ELET6



EBR & EBR.B

LISTED

NYSE

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