CENTRAIS ELETRICAS BRASILEIRAS S/A
Centrais Elétricas Brasileiras S/A ("Company" or "Eletrobras") hereby informs its shareholders and the market in general that, it received, on December 6, 2017, from B3 SA ("Brazil, Bolsa e Bialcão"), the Official Letter 398/2017/CVM/SEP/GEA-1 requesting clarifications regarding the news published by the newspaper "O Estado de São Paulo", Economy and Business section, under the heading "Broadcast Column: Eletrobras evaluates external funding in early 2018", among other information, as transcribed at the end of this market announcement:
In compliance with the Official Letter in reference, the Company hereby informs the following:
1. As broadly disclosed to the market, Eletrobras intends to reduce the Net Debt/Management Ebitda ratio under the 2017/2021 Business and Management Plan ("PDNG") by adopting various measures such as divestments, privatizations and /or administration and management of debts.
2. Within this context, as disclosed in the Market Announcement dated of August 3rd, 2017, the Company is strategically evaluating various initiatives and opportunities, which may contribute to the achievement of the goals set forth in said PDNG, among them, the possibility of funding of funds for the discharge or management of contracted debts of the Company;
3. In this scenario, despite prior analysis, evaluation and procedures necessary for the Company to be prepared for an eventual fundraising operation, if it is approved by its competent management bodies to take advantage of new opportunities that may arise, the Company has not signed, until this date, the contracts mentioned in the news.
Rio de Janeiro, December 7, 2017.
Armando Casado de Araujo CFO and Investor Relations Officer
EBR & EBR.B
Free Translation of the Oficial Letter 398/2017/CVM/SEP/GEA-1
"Subject: Request for clarification on news
1. We refer to the news published on this date, by the newspaper "O Estado de
São Paulo", Economy and Business section, under the heading "Broadcast Column: Eletrobras evaluates external funding in early 2018", which include the following statements:
Eletrobras is considering retaking a debt external funding, which may happen at the first opportunitie of 2018, at the beginning of the year, after Cemig successfully closed a US $ 1 billion bond fund overseas. Bradesco and Bank of America Merril Lynch (BofA) have already been contracted to lead the process. The operation, if implemented, will help the state to compose its restructuring program, which involves privatization and is likely to occur in the second half of 2018.
2. In this regard, we request a statement from the company concerning the veracity of the news, and if so, explain the reasons why it was not considered a relevant fact and comment about other information considered important on the subject
3. In addition, as stated in CVM Instruction Nº 358/02, article 4, sole paragraph, provides for the obligation to inquire of the Company's management and controlling shareholders, as well as other persons with access to relevant acts or facts, whether they are aware of information that must be disclosed to thie market in order to ascertain whether they know information that should be disclosed to the market.
4. The answer should be submitted through the Empresa.NET System, category:
Market Announcement, type: Clarifications Inquiries CVM/B3, subject: Disclosed in the news media, which should include a transcript of this Official Letter.
5. The Superintendence of Corporate Relations will be responsible for, in use of its legal attibutions ans, based on Law Nº 6,385/1976, article 9, item II, and CVM Instruction Nº 452/2007, the determination of the application of a fine, in the amount of R$ 1,000 (one thousand reais), without prejudice to other administrative sanctions, for failure to comply with the requirements of this Official Letter, send exclusively by e-mail, until 12.07.2017, notwithstanding the provisions of the sole paragraph of article 6 of CVM Instruction 358/02."
EBR & EBR.B