Petrobras Negotiation of Eletrobras Debts

Rio de Janeiro, April 30, 2018 – Petróleo Brasileiro S.A. – Petrobras, further to the Press Release disclosed today, reports that all contractual instruments relating to the agreement negotiated with Centrais Elétricas Brasileiras S.A. – Eletrobras and its controlled power distributors were signed on this date. The agreement is related to part of the debts arising from the supply of oil and natural gas for the generation of energy in the north of Brazil, in the approximate amount of R$17 billion. It should be noted that out of this amount, around R$12.2 billion are Petrobras credits and R$4.6 billion represent credits of its subsidiary Petrobras Distribuidora S.A. (BR).

The agreement contemplates the restructuring of guarantees in the Debt Acknowledgment Agreement (CCDs) concluded on 12/31/2014, whose updated value is R$10.7 billion and which will rely on a new structure of real guarantees, and on an increase in the surety provided by Eletrobras until the effective privatization of the distributors. Concomitantly, new CCDs were concluded in the value of R$6.1 billion relating to debts not contemplated by the CCDs signed in 2014, with guarantee provided by Eletrobras, of which R$4.5 billion in guarantees with a condition of effectiveness in the case of privatization, which must be paid off in 36 (thirty-six) monthly installments updated by market rates.

Eletrobras agreed to accept approximately R$11 billion of the total amount negotiated through Debt Assumption Instruments (IADs), which feature real guarantees offered by Eletrobras, conditional on the effective privatization of the distributors.

In addition to the CCDs and IADs mentioned above, an Amendment to the Purchase and Sale Contracts of Natural Gas and an Assignment of Rights and Obligations of the Amazonas Energia Contract to Amazonas Geração e Transmissão were also concluded.

Regarding the debt accrued by Amazonas Energia with Petrobras as a result of natural gas supply within the state of Amazonas, a portion not included in these negotiations, in the approximate amount of R$3 billion, remains in dispute in a collection suit.

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