AES Brasil ponders follow-on stock offering

Brazilian energy company AES Brasil Energia SA (BVMF:AESB3) announced on Monday it is studying the possibility of a follow-on share offering.

The company has already started talks with certain financial institutions and its international affiliates to evaluate the feasibility of the move.

The list includes lenders Banco Bradesco BBI SA, Banco Itau BBA SA, Banco de Investimentos Credit Suisse (Brasil) SA, Banco HSBC SA and the local unit of Spain's Banco Santander SA (BME:SAN).

According to a securities filing, AES Brasil is planning on holding a public offering for distribution with restricted efforts to place shares issued by the firm. No official decision on this follow-on share offering has been made so far as it is subject to several matters, such as shareholder approval as well as favourable political, macroeconomic and market conditions.

This potential offering would help the company’s growth and asset diversification, the filing said.

Currently, AES Brasil has a total installed capacity of 4.4 GW, of which 2,658.4 MW comes from hydro, 1,435.9 MW from wind and 294.1 MW from solar assets. The company said is also developing up to 1.5 GW of wind and solar projects.

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