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LOANS, FINANCING AND DEBENTURES

12 Months Ended

Dec. 31, 2023

NOTE 23 - LOANS, FINANCING AND DEBENTURES

The breakdown of loans, financing and debentures owed by Eletrobras, and its subsidiaries are given below:


	Annual rates on 12/31/2023
	Minimum		Maximum		12/31/2023	12/31/2022
National Currency
Capital markets¹	3.58	%	16.24	%	27,074,612	21,990,407
Development banks²	2.49	%	11.55	%	16,735,742	15,386,133
Banking market³	2.94	%	17.02	%	5,103,955	5,738,125
Sector funds⁴	5.00	%	5.00	%	1,319,921	1,035,420
Other Institutions⁵	5.42	%	14.82	%	3,646,220	7,414,629
					53,880,450	51,564,714
Foreign currency
Capital market¹	3.63	%	4.63	%	6,246,018	6,553,517
Investment banks²	2.00	%	4.02	%	419,170	988,291
Banking market³	6.60	%	6.60	%	234,652	—
					6,899,840	7,541,808

					60,780,290	59,106,522

Financial Charges					1,640,901	1,664,942
Principal					9,689,946	5,859,828
Current					11,330,847	7,524,770

Non-current					49,449,443	51,581,752

					60,780,290	59,106,522

¹ The balance refers to the bonuses, debentures and commercial paper;

² The balance refers to the operations with BASA FNO, BNDES, BNB and FINEP;

³ The balance refers to loans and financing with financial institutions;

⁴ The balance refers to the Global Reversion Reserve (RGR); and

⁵ The balance refers, substantially, to the debt with Apollo FIDC and BR Eletro FIDC.

Below is a breakdown on December 31, 2023, of the debt raised on the capital markets (national and foreign currencies) and through their maturities, the segregation between current and non-current:


		12/31/2023		12/31/2022
	Maturity	Current	Non-current	Current	Non-current
Bonus
Eletrobras	2/4/2025	—	2,441,151	38,617	2,594,669
Eletrobras	2/4/2030	—	3,804,867	73,904	3,846,327
		—	6,246,018	112,521	6,440,996
Commercial Notes
Eletrobras	10/13/2023	—	—	16,853	6,000,000
Furnas	8/23/2025	20,544	499,262	—	—
Furnas	8/23/2026	21,677	498,770	—	—
Furnas	8/23/2027	43,701	996,989	—	—
Furnas	8/23/2027	21,992	498,524	—	—
Furnas	8/23/2028	44,205	996,753	—	—
		152,119	3,490,298	16,853	6,000,000
Bonds
Eletrobras	4/25/2024	2,233,550	—	40,090	2,200,000
Eletrobras	4/15/2026	33,306	1,200,000	37,365	1,200,000
Eletrobras	4/25/2026	15,497	1,000,000	18,487	1,000,000
Eletrobras	5/15/2029	5,468	906,463	5,576	866,533
Eletrobras	4/15/2031	17,250	1,768,675	16,817	1,690,763
Eletrobras	9/15/2028	82,304	2,853,424	—	—
Eletrobras	9/15/2031	18,964	1,333,187	—	—
Eletrobras	9/15/2031	18,967	1,333,388	—	—
Eletrobras	9/15/2031	18,967	1,333,388	—	—
Furnas	11/15/2024	152,396	—	155,786	150,001
Furnas	11/15/2029	2,373	1,000,832	2,464	952,777
Furnas	7/1/2038	358,300	5,153,018	145,793	5,067,260
Furnas	4/15/2024	291,964	—	353,111	273,902
Chesf	1/15/2029	23,406	115,247	18,740	132,155
CGT Eletrosul	9/16/2024	223,192	—	9,182	214,545
CGT Eletrosul	9/15/2028	11,999	102,624	11,390	107,610
CGT Eletrosul	11/16/2028	605	364,368	639	348,212
CGT Eletrosul	9/17/2029	5,801	227,231	13,221	199,061
CGT Eletrosul	8/31/2028	10,991	248,531	—	—
Eletronorte	6/28/2028	—	194,444	170,107	111,111
Eletronorte	6/28/2028	—	333,333	252,523	208,333
Eletronorte	5/30/2032	55,641	383,101	—	—
		3,580,941	19,851,254	1,251,291	14,722,263

		3,733,060	29,587,570	1,380,665	27,163,259

The loans, financing and debentures profile is shown in note 38.3.

The Company contracted financial derivative instruments for debt protection in dollars with the objective of protecting the bonds in relation to exchange rate variation. The fair value of the derivatives is shown in note 38.2.

New debt and financing

With the objective of paying off the most onerous liabilities and strengthening the cash situation, in June 2023, the subsidiary Eletronorte contracted debt in the amount of R$820,000 with a payment period of 5 years, the amount of R$140,000 by bank credit note signed with China Construction Bank, at an interest rate of CDI + 2.00% p.a. and the amount of R$680,000 by export credit note, signed with Banco do Brasil, at an interest rate of CDI + 2.20% p.a.

Reprofiling of debt

In May 2020, the subsidiary CGT Eletrosul raised funds in the amount of R$1,000,000 by bank credit note from Banco Bradesco BBI. In June 2023, this debt was reprofiled, postponing the payment period to 5 years from June 2023 and with the reduction of the interest rate from CDI + 2.62% p.a. to CDI + 2.17% p.a. Eletrobras is the guarantor in this operation.

Reprofiling of debentures

In June 2023, the Board of Management of the Company approved the reprofiling of the 1^st issue of debentures of Amazonas Geração e Transmissão de Energia, whose debt balance is R$180,555 and the 2^nd issue of simple debentures, of Eletronorte, whose debt balance is R$333,333 and the approval of the collateral guarantee, by Eletrobras, as guarantor and principal payer of the referred to debentures.

With the reprofiling, the maturing of these liabilities by Eletronorte was postponed to 5 years as of June 2023 and with the reduction of the current interest rates (CDI + 2.75% p.a. for Amazonas Geração e Transmissão de Energia and CDI + 2.60 % p.a. for Eletronorte) within the scope of these contracts to CDI + 2.17% p.a.

Issuance of debentures

In September 2023, there was the settlement of the public offering by the Company regarding its 4^th issue of simple debentures, not convertible in shares, unsecured, in two series, for public distribution, of 7,000,000 debentures with nominal unit value of R$1,000.00 (one thousand reals), on the date of issue, totaling the amount of R$7,000,000 on the date of issue with (i) R$4,000,000 from the first series; and (ii) R$3,000,000 from the second series.

Issuance of Commercial Notes

In September 2023, the offer on behalf of the subsidiary Furnas was closed for the 1^st issue of commercial paper, in 5 series, with collateral guarantee from the Company, for public distribution, for the total value of R$3,500,000, with: (i) R$500,000 in the 1^st series; (ii) R$500,000 in the 2^nd series; (iii) R$1,000,000 in the 3^rd series; (iv) R$500,000 in the 4^th series; and (v) R$1,000,000 in the 5^th series.

Redemption of commercial paper

In October 2023, Eletrobras fully redeemed in advance the 1^st issue of Commercial Paper. The total value paid was R$6,284,425.

23.1 - Changes in loans, financing and debentures

The changes presented below comprise the years ending December 31, 2023 and 2022:


	2023	2022
Opening balance as of January 1	59,106,522	44,015,645
Effect on cash flow:
Funding	11,821,053	8,500,000
Interest Paid	(5,512,449)	(3,306,894)
Amortization of Principal	(13,763,329)	(6,848,652)
Non-cash effect:
Effects of deconsolidation	—	(6,380,128)
Interest and charges incurred	5,721,589	3,865,933
Monetary variations incurred	211,492	366,669
Exchange rate changes	(89,641)	(515,681)
Adjustment resulting from contracts with resources from RGR	558,360	—
RGR derecognition	13,710	(573,008)
Fair value adjustment	(44,242)	—
Acquisition of investee control	2,753,190	19,979,111
Assumption of debt	—	—
Transfers	4,035	3,527
Final balance on December 31	60,780,290	59,106,522

The long-term portion of loans, financing, and debentures are scheduled to mature as follows:


2024	2025	2026	2027	2028	2029 to 2042	Total
11,330,847	7,996,447	7,742,228	6,834,676	5,682,482	21,193,610	60,780,290

23.2 – Guarantees

The Company participates, as a guarantor, in several projects of its controlled and non-controlled investees. The total exposure in guarantees comprises the guarantees provided to associates and joint ventures in the amount of R$25,756,842, as of December 31, 2023, as shown in the table below:


NON-CONTROLLED COMPANIES
		Guaranteed Debt	Warranty
		Balance on	Termination
Guarantor	Enterprise/Project	12/31/2023	(year)
Eletrobras	UHE Belo Monte (Norte Energia)	13,978,841	2042
Eletrobras	UHE Jirau	3,151,036	2034
Eletrobras	Angra III	3,141,268	2036
Eletrobras	Angra III	2,795,369	2038
Eletrobras	UHE Jirau	871,999	2035
Eletrobras	UHE Sinop	563,615	2038
Eletrobras	Empresa de Energia São Manoel	533,477	2038
Eletrobras	Amazonas Energia	257,153	2026
Furnas	Empresa de Energia São Manoel	101,757	2033
Eletrobras	Angra I	79,146	2027
Chesf	UHE Sinop	75,640	2032
Eletronorte	UHE Sinop	75,640	2032
Eletrobras	Chapada do Piauí II	65,148	2032
Eletrobras	Chapada do Piauí I	64,736	2032
Eletrobras	Caldas Novas Transmissão	2,017	2028
Guarantees of non-controlled companies		25,756,842

The guarantees supplied to subsidiary investees are shown in segregated form as their balances are already recorded in financing and loans payable.

As of December 31, 2023, the guaranteed amount for the subsidiaries of R$17,945,868 is shown in the table below:


CONTROLLED COMPANIES
		Guaranteed Debt	Warranty
		Balance on	Termination
Guarantor	Enterprise/Project	12/31/2023	(year)
Eletrobras	UHE Santo Antônio	5,512,526	2038
Eletrobras	UHE Teles Pires	1,604,112	2036
Eletrobras	Issuance of Debentures - Furnas	1,017,764	2029
Eletrobras	Issue of Commercial Paper - Furnas	1,045,090	2028
Eletrobras	Issue of Commercial Paper - Furnas	1,044,830	2027
Eletrobras	Support to the Working Capital Structure 4	729,858	2028
Eletrobras	Belo Monte Transmissora de Energia	603,127	2029
Eletrobras	Support to the Working Capital Structure 5	583,638	2028
Eletrobras	Issue of Commercial Paper - Furnas	522,545	2027
Eletrobras	Issue of Commercial Paper - Furnas	522,415	2026
Eletrobras	Issue of Commercial Paper - Furnas	521,651	2025
Eletrobras	UHE Teles Pires	439,398	2032
Eletrobras	UHE Santo Antônio	433,894	2030
Eletrobras	Issue of debentures - Settlement of BNDES contracts	333,638	2028
Eletrobras	UHE Santo Antônio	292,212	2024
Eletrobras	Issue of debentures - CGT Eletrosul	259,621	2028
Eletrobras	Issue of debentures - CGT Eletrosul	228,803	2025
Eletrobras	Release Wind Complex - Environment II	205,078	2028
Eletrobras	UHE Simplício	203,838	2026
Eletrobras	Miscellaneous - AmGT	194,647	2028
Eletrobras	Chesf Corporate Projects	162,324	2029
Eletrobras	Issuance of Debentures - Furnas	152,396	2024
Eletrobras	Support to the Working Capital Structure 3	140,724	2028
Eletrobras	Linha Verde Transmissora	133,144	2033
Eletrobras	Eólicas Casa Nova II e III	129,139	2031
Eletrobras	Corporate Transmission Projects	115,202	2031
Eletrobras	Transmissora Sul Brasileira de Energia	114,545	2028
Eletrobras	Investment Plan 2012-2014	113,230	2029
Eletrobras	Corporate Transmission Projects	112,830	2034
Eletrobras	UHE Mauá	111,586	2028
Eletrobras	Transmissora Delmiro Gouveia	92,914	2032
Eletrobras	UHE São Domingos	77,536	2028
Eletrobras	UHE Passo de São João	43,560	2026
Eletrobras	Transmissora Delmiro Gouveia	43,518	2031
Eletrobras	UHE Batalha	39,715	2025
Eletrobras	Chesf Corporate Projects	35,740	2029
Eletrobras	UHE Baguari	11,381	2026
Eletrobras	RS Energia	11,505	2027
Eletrobras	RS Energia	6,194	2027
Controlled companies guarantees		17,945,868

In the period ended December 31, 2023, the Company had R$153,945 in non-current liabilities, referring to provisions for guarantees.

23.3 – Assumed Obligations - Covenants

The Company has restrictive clauses (covenants) in some of its loan, financing and debentures contracts. The principal covenants are regarding: (i) net debt on EBITDA, (ii) debt service coverage ratio (ICSD), (iii) corporate guarantees, (iv) requirements for changing corporate control and (v) limitation to the significant sale of assets. It is important to highlight that were no covenant defaults during the financial year ended December 31, 2023.

Accounting Policy

Loans, financing and debentures are initially recognized at fair values which, in those cases, represent the transaction values, and subsequently updated by contractual charges (interest, monetary adjustments and exchange rate variations) and payments made.

To address the risks of possible execution of the guarantees provided by Eletrobras for financing non-controlled companies, the Company provides between 1% and 5% of the outstanding balance, considering the degree of risk involved, which is calculated based on the history of execution of guarantees and the net working capital of the company holding the debt.