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Loans, Financings and Debentures | 12 Months Ended
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Dec. 31, 2017
Text block1 [abstract] |
Loans, Financings and Debentures |
21. | LOANS, FINANCINGS AND DEBENTURES
Financing source |  | Principal maturity |  |  | Annual financial cost % |  | Currency |  | 2017 |  |  | 2016 |
|  |  |  |  |  |  |  |  | Current |  |  | Non-current |  |  | Total |  |  | Total |
FOREIGN CURRENCY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
KfW |  |  | 2019 |  |  | 1,78% |  | Euros |  |  | 4 |  |  |  | — |  |  |  | 4 |  |  |  | 7 |
Eurobonds |  |  | 2024 |  |  | 9.25% |  | USD |  |  | 25 |  |  |  | 3,308 |  |  |  | 3,333 |  |  |  | — |
Banco do Brasil: Various Bonds (1) |  |  | 2024 |  |  | Various |  | US$ |  |  | 2 |  |  |  | 22 |  |  |  | 24 |  |  |  | 23 |
(-) Transaction costs |  |  |  |  |  |  |  |  |  |  | — |  |  |  | (15 | ) |  |  | (15 | ) |  |  | — |
(-) Interest paid in advance |  |  |  |  |  |  |  |  |  |  | — |  |  |  | (48 | ) |  |  | (48 | ) |  |  | — |
Debt in foreign currency |  |  |  |  |  |  |  |  |  |  | 31 |  |  |  | 3,267 |  |  |  | 3,298 |  |  |  | 30 |
BRAZILIAN CURRENCY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Banco do Brasil |  |  | 2017 |  |  | 108.33% of the CDI Rate |  | R$ |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 73 |
Banco do Brasil |  |  | 2017 |  |  | 108.00% of CDI |  | R$ |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 151 |
Banco do Brasil |  |  | 2017 |  |  | 111.00% of CDI Rate |  | R$ |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 51 |
Banco do Brasil |  |  | 2021 |  |  | 140.00% of CDI Rate |  | R$ |  |  | 1 |  |  |  | 741 |  |  |  | 742 |  |  |  | 1,156 |
Banco do Brasil |  |  | 2022 |  |  | 146.50% of CDI |  | R$ |  |  | — |  |  |  | 500 |  |  |  | 500 |  |  |  | 510 |
BNDES |  |  | 2017 |  |  | TJLP+2.34% |  | R$ |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 74 |
Caixa Econômica Federal |  |  | 2018 |  |  | 119.00% of CDI |  | R$ |  |  | 8 |  |  |  | — |  |  |  | 8 |  |  |  | 109 |
Caixa Econômica Federal |  |  | 2022 |  |  | 146.50% of CDI |  | R$ |  |  | 1 |  |  |  | 626 |  |  |  | 627 |  |  |  | 698 |
Eletrobras |  |  | 2023 |  |  | UFIR; RGR + 6.00 to 8.00% |  | R$ |  |  | 17 |  |  |  | 33 |  |  |  | 50 |  |  |  | 68 |
Large customers |  |  | 2024 |  |  | Various |  | R$ |  |  | 2 |  |  |  | 2 |  |  |  | 4 |  |  |  | 6 |
Finep |  |  | 2018 |  |  | TJLP + 5% and TJLP + 8% |  | R$ |  |  | 2 |  |  |  | — |  |  |  | 2 |  |  |  | 6 |
Promissory Notes – 7th Issue |  |  | 2017 |  |  | 128.00% of CDI |  | R$ |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 674 |
Banco da Amazônia S.A. |  |  | 2018 |  |  | CDI + 1.90% |  | R$ |  |  | 122 |  |  |  | — |  |  |  | 122 |  |  |  | 123 |
Sonda (2) |  |  | 2021 |  |  | 110.00% of CDI |  | R$ |  |  | — |  |  |  | 42 |  |  |  | 42 |  |  |  | 83 |
(-) Transaction costs |  |  |  |  |  |  |  |  |  |  | (2 | ) |  |  | (24 | ) |  |  | (26 | ) |  |  | (53 | )
Debt in Brazilian currency |  |  |  |  |  |  |  |  |  |  | 151 |  |  |  | 1,920 |  |  |  | 2,071 |  |  |  | 3,729 |
Total of loans and financings |  |  |  |  |  |  |  |  |  |  | 182 |  |  |  | 5,187 |  |  |  | 5,369 |  |  |  | 3,759 |
Debentures – 3rd Issue, 1st series (3) |  |  | 2017 |  |  | CDI + 0.90% |  | R$ |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 543 |
Debentures – 3rd Issue, 2nd Series (3) |  |  | 2019 |  |  | IPCA + 6.00% |  | R$ |  |  | 158 |  |  |  | 143 |  |  |  | 301 |  |  |  | 293 |
Debentures – 3rd Issue, 3rd Series (3) |  |  | 2022 |  |  | IPCA + 6.20% |  | R$ |  |  | 51 |  |  |  | 960 |  |  |  | 1,011 |  |  |  | 984 |
Debentures – 5th Issue, 1st series (3) |  |  | 2018 |  |  | CDI + 1.70% |  | R$ |  |  | 703 |  |  |  | — |  |  |  | 703 |  |  |  | 1,411 |
Debentures – 6th Issue, 1st series (3) |  |  | 2018 |  |  | CDI + 1.60% |  | R$ |  |  | 508 |  |  |  | — |  |  |  | 508 |  |  |  | 1,041 |
Debentures – 6th Issue, 2nd series (3) |  |  | 2020 |  |  | IPCA +8.07% |  | R$ |  |  | 1 |  |  |  | 31 |  |  |  | 32 |  |  |  | 31 |
Debentures – 7th Issue, 1st series (3) |  |  | 2021 |  |  | 140.00% of CDI |  | R$ |  |  | 47 |  |  |  | 1,636 |  |  |  | 1,683 |  |  |  | 2,242 |
Debentures – 2nd Issue (4) |  |  | 2017 |  |  | IPCA + 7.96% |  | R$ |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 235 |
Debentures – 3rd Issue, 1st series (4) |  |  | 2018 |  |  | CDI + 0.69% |  | R$ |  |  | 447 |  |  |  | — |  |  |  | 447 |  |  |  | 464 |
Debentures – 3rd Issue, 2nd series (4) |  |  | 2021 |  |  | IPCA + 4.70% |  | R$ |  |  | 59 |  |  |  | 1,478 |  |  |  | 1,537 |  |  |  | 1,496 |
Debentures – 3rd Issue, 3rd series (4) |  |  | 2025 |  |  | IPCA + 5.10% |  | R$ |  |  | 39 |  |  |  | 882 |  |  |  | 921 |  |  |  | 896 |
Debentures – 4th Issue, single series (4) |  |  | 2018 |  |  | CDI + 4.05% |  | R$ |  |  | 20 |  |  |  | — |  |  |  | 20 |  |  |  | 1,627 |
Debentures – 5th Issue, single series (4) |  |  | 2022 |  |  | 146.50% of CDI |  | R$ |  |  | 1 |  |  |  | 1,575 |  |  |  | 1,576 |  |  |  | — |
Debentures (5) |  |  | 2018 |  |  | CDI + 1.60% |  | R$ |  |  | 100 |  |  |  | — |  |  |  | 100 |  |  |  | 101 |
Debentures (5) |  |  | 2018 |  |  | CDI + 0.74% |  | R$ |  |  | 34 |  |  |  | — |  |  |  | 34 |  |  |  | 67 |
Debentures (5) |  |  | 2022 |  |  | TJLP+1.82% (75%); Selic+1.82% (25%) |  | R$ |  |  | 33 |  |  |  | 122 |  |  |  | 155 |  |  |  | 133 |
Debentures (5) |  |  | 2019 |  |  | 116.50% of CDI |  | R$ |  |  | — |  |  |  | 50 |  |  |  | 50 |  |  |  | — |
Debentures (2) |  |  | 2019 |  |  | 128.50% of CDI |  | R$ |  |  | 15 |  |  |  | 11 |  |  |  | 26 |  |  |  | — |
(-) FIC Pampulha: Securities of subsidiary companies (6) |  |  |  |  |  |  |  |  |  |  | (25 | ) |  |  | — |  |  |  | (25 | ) |  |  | (65 | )
(-) Transaction costs |  |  |  |  |  |  |  |  |  |  | (2 | ) |  |  | (48 | ) |  |  | (50 | ) |  |  | (79 | )
Total, debentures |  |  |  |  |  |  |  |  |  |  | 2,189 |  |  |  | 6,840 |  |  |  | 9,029 |  |  |  | 11,420 |
Overall total |  |  |  |  |  |  |  |  |  |  | 2,371 |  |  |  | 12,027 |  |  |  | 14,398 |  |  |  | 15,179 |
(1) | Net balance of the Restructured Debt comprising bonds at par and discounted, with balance of R$ 149, less the amounts given as Deposits in guarantee, with balance of R$ 126. Interest rates vary – from 2 to 8% p.a.; six-month Libor plus spread of 0.81% to 0.88% p.a.
(2) | CemigTelecom.
(3) | Cemig Geração e Transmissão.
(4) | Cemig Distribuição.
(5) | Gasmig.
(6) | FIC Pampulha has financial investments in securities issued by subsidiaries of the Company. For more information on this fund, see Note 30.
Guarantees The guarantees of the debtor balance on loans and financings, on December 31, 2017, were as follows:
|  | 2017 |
Promissory Notes and Sureties |  |  | 8,850 |
Receivables |  |  | 3,963 |
Shares |  |  | 1,390 |
Without guarantee |  |  | 195 |
TOTAL |  |  | 14,398 |
The composition of loans, financings and debentures, by currency and indexor, with the respective amortization, is as follows:
|  | 2018 |  |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | 2023 |  |  | 2024 |  |  | After 2024 |  |  | Total |
Currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Euros |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |
US dollar |  |  | 27 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,330 |  |  |  | — |  |  |  | 3,357 |
Total, currency denominated |  |  | 31 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,330 |  |  |  | — |  |  |  | 3,361 |
Indexors |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IPCA (1) |  |  | 308 |  |  |  | 647 |  |  |  | 820 |  |  |  | 819 |  |  |  | 547 |  |  |  | 220 |  |  |  | 220 |  |  |  | 220 |  |  |  | 3,801 |
Ufir / RGR (2) |  |  | 17 |  |  |  | 13 |  |  |  | 11 |  |  |  | 3 |  |  |  | 3 |  |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | 49 |
CDI (3) |  |  | 1,990 |  |  |  | 1,044 |  |  |  | 1,165 |  |  |  | 1,571 |  |  |  | 1,432 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7,202 |
URTJ / TJLP (4) |  |  | 27 |  |  |  | 23 |  |  |  | 23 |  |  |  | 23 |  |  |  | 23 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 119 |
IGP–DI (5) |  |  | 2 |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  |  |  |  |  | — |  |  |  | 4 |
Total governed by indexors |  |  | 2,344 |  |  |  | 1,727 |  |  |  | 2,020 |  |  |  | 2,416 |  |  |  | 2,005 |  |  |  | 223 |  |  |  | 220 |  |  |  | 220 |  |  |  | 11,175 |
(-) Transaction costs |  |  | (4 | ) |  |  | (15 | ) |  |  | (19 | ) |  |  | (22 | ) |  |  | (15 | ) |  |  | — |  |  |  | (16 | ) |  |  | — |  |  |  | (91 | )
(-) Interest paid in advance |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (47 | ) |  |  | — |  |  |  | (47 | )
Overall total |  |  | 2,371 |  |  |  | 1,712 |  |  |  | 2,001 |  |  |  | 2,394 |  |  |  | 1,990 |  |  |  | 223 |  |  |  | 3,487 |  |  |  | 220 |  |  |  | 14,398 |
(1) | Expanded National Customer Price (IPCA) Index.
(2) | Fiscal Reference Unit (Ufir / RGR).
(3) | CDI: Interbank Rate for Certificates of Deposit.
(4) | URTJ: Interest rate reference unit.
(5) | IGP-DI (‘General – Domestic Availability’) Price Index.
The principal currencies and indexors used for monetary updating of loans and financings had the following variations:
Currency |  | Accumulated change in 2017, % |  |  | Accumulated change in 2016, % |  |  | Indexor |  |  | Accumulated change in 2017, % |  |  | Accumulated change in 2016, % |
US dollar |  |  | 1.50 |  |  |  | (16.54 | ) |  |  | IPCA |  |  |  | 2.95 |  |  |  | 6.29 |
Euros |  |  | 15.41 |  |  |  | (19.10 | ) |  |  | CDI |  |  |  | 9.93 |  |  |  | 14.06 |
The changes in loans, financings and debentures were as follows:
Balance on December 31, 2014 |  |  | 13,509 |
Loans and financings obtained |  |  | 5,817 |
Funding costs |  |  | (78 | )
Financings obtained net of funding costs |  |  | 5,739 |
Monetary and exchange rate variation |  |  | 400 |
Financial charges provisioned |  |  | 1,529 |
Amortization of transaction cost |  |  | 16 |
Financial charges paid |  |  | (1,331 | )
Amortization of financings |  |  | (4,695 | )
Balance on December 31, 2015 |  |  | 15,167 |
Loans and financings obtained |  |  | 5,878 |
(-) Transaction costs |  |  | (141 | )
Financings obtained, net |  |  | 5,737 |
Monetary and exchange rate variation |  |  | 231 |
Financial charges provisioned |  |  | 2,002 |
Amortization of transaction cost |  |  | 68 |
Financial charges paid |  |  | (2,369 | )
Amortization of financings |  |  | (5,592 | )
Subtotal |  |  | 15,244 |
(–) FIC Pampulha: Securities of subsidiary companies |  |  | (65 | )
Balance at December 31, 2016 |  |  | 15,179 |
Loans and financings obtained |  |  | 3,363 |
(–) Transaction costs (1) |  |  | (16 | )
(–) Interest paid in advance (1) |  |  | (48 | )
Financings obtained, net |  |  | 3,299 |
Transaction costs (2) |  |  | (11 | )
Monetary and exchange rate variation |  |  | 168 |
Financial charges provisioned |  |  | 1,537 |
Amortization of transaction cost |  |  | 67 |
Financial charges paid |  |  | (1,749 | )
Amortization of financings |  |  | (4,131 | )
Subtotal |  |  | 14,359 |
FIC Pampulha: Securities of subsidiary companies |  |  | 39 |
Balance on December 31, 2017 |  |  | 14,398 |
(1) | Includes taxes with no cash effect, of R$ 10.
(2) | Transaction costs arising from the 5th issue of debentures by Cemig D, as per table of funds raised below.
Borrowing costs, capitalized Costs of loans directly related to acquisition, construction or production of an asset which necessarily requires a significant time to be concluded for the purpose of use or sale are capitalized as part of the cost of the corresponding asset. For borrowings raised for the construction of a specific PP&E asset, the Company capitalizes all of the financial costs related to the borrowings directly to the respective assets being financed. For other borrowings raised that are not linked directly to a specific PP&E asset, a weighted average rate is established for the capitalization of the costs of those loans. All other costs of loans are recorded as finance costs in the period in which they are incurred. Costs of loans include interest and other costs incurred by the Company in relation to the loan. The subsidiaries Cemig D and Gasmig transferred to Intangible assets the costs of loans and financings linked to working in progress, as follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Costs of loans and financings |  |  | 1,604 |  |  |  | 2,070 |  |  |  | 1,545 |
Financing costs on Intangible assets |  |  | (71 | ) |  |  | (142 | ) |  |  | (159 | )
Net effect in Profit or loss |  |  | 1,533 |  |  |  | 1,928 |  |  |  | 1,386 |
The amounts of the capitalized borrowing costs have been excluded from the statement of cash flows, in the additions to cash flow of investment activities, because they do not represent an outflow of cash for acquisition of the related asset. The average rate of capitalization of the loans and financings whose costs were transferred to work in progress was 14.28% (18.02% in 2016 and 15.25% in 2015). Funding raised This table gives the totals of funds raised in 2017, 2016 and 2015:
Financing source 2017 |  | Signature date |  |  | Principal maturity |  |  | Annual financing cost – % |  | Amount (*) |
Foreign currency |  |  |  |  |  |  |  |  |  |  |  |  |  |
Eurobonds |  |  | 12/05/2017 |  |  |  | 2024 |  |  | 9.25% |  |  | 3,252 |
(–) Transaction costs (*) |  |  |  |  |  |  |  |  |  |  |  |  | (16 | )
Interest paid in advance (*) |  |  |  |  |  |  |  |  |  |  |  |  | (48 | )
Brazilian currency |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debentures (1) |  |  | 11/04/2013 |  |  |  | 2022 |  |  | CDI + 0.74% |  |  | 34 |
Debentures (2) |  |  | 04/22/2017 |  |  |  | 2019 |  |  | 128.50% of CDI |  |  | 26 |
Debentures – 5th Issue, single series (3) |  |  | 12/14/2017 |  |  |  | 2022 |  |  | 146.50% of CDI |  |  | 1,575 |
(–) Transaction costs (3) |  |  |  |  |  |  |  |  |  |  |  |  | (11 | )
Total raised |  |  |  |  |  |  |  |  |  |  |  |  | 4,812 |
(*) | Includes taxes without cash effect, of R$ 10.
(1) | Subscription by BNDESPar of Gasmig’s fourth debentures Issue, in June 2017, to support the plan for investment in expansion of the gas distribution network.
(2) | CemigTelecom completed its second issue of non-convertible debentures in May 2017 with real guarantees and additional surety, in a single series, to roll over debt and strengthen cash position.
(3) | On December 14, 2017 Cemig Telecom made its 5th issue of non-convertible debentures, with maturity 4.5 years, annual remuneration of 146.50% of the CDI, to be amortized in 36 monthly installments becoming due as from July 2019. Payment for subscription of the Debentures of the 5th issue was made with the debentures of the 4th issue – thus there was no cash effect in the Company.
Funding raised 2016 |  | Principal maturity |  |  | Annual financial cost, % |  | Amount raised |
Brazilian currency |  |  |  |  |  |  |  |  |  |
Caixa Econômica Federal – Cemig D |  |  | 2020 |  |  | 132.14% of CDI |  |  | 674 |
Debentures (Cemig D) |  |  | 2018 |  |  | CDI + 4.05% |  |  | 1,575 |
KfW (Cemig GT) |  |  | 2018 |  |  | 1.78% |  |  | 2 |
Promissory Notes – Cemig GT – 7th Issue |  |  | 2017 |  |  | 128% of CDI |  |  | 606 |
Debentures – 4th Issue – 7th Series (Gasmig) |  |  | 2020 |  |  | TJLP |  |  | 24 |
Debentures – 7th Issue (CEMIG GT) |  |  | 2021 |  |  | 140% of CDI |  |  | 2,195 |
Banco do Brasil |  |  | 2018 |  |  | 132.90% of CDI |  |  | 580 |
Sonda (Cemig Telecom) |  |  | 2021 |  |  | 110% of CDI |  |  | 81 |
Financings obtained net of funding costs |  |  |  |  |  |  |  |  | 5,737 |
Funding raised 2015 |  | Principal maturity |  |  | Annual financial cost, % |  | Amount raised |
Brazilian currency |  |  |  |  |  |  |  |  |  |
Banco do Brasil (Cemig GT) |  |  | 2015 |  |  | 106.90% of CDI |  |  | 593 |
Debentures 6th Issue – 1st Series (Cemig GT) |  |  | 2018 |  |  | CDI + 1.60% |  |  | 967 |
Debentures 6th Issue – 2nd Series (Cemig GT) |  |  | 2020 |  |  | IPCA + 8.07% |  |  | 27 |
Promissory Notes – 6th Issue (Cemig GT) |  |  | 2016 |  |  | 120% of CDI |  |  | 1,407 |
Banco da Amazônia (Cemig GT) |  |  | 2018 |  |  | CDI + 1.90% |  |  | 118 |
Caixa Econômica Federal (Cemig D) |  |  | 2018 |  |  | 119% of CDI |  |  | 200 |
Promissory Notes – 8th Issue (Cemig D) |  |  | 2016 |  |  | 111.70% of CDI |  |  | 1,685 |
Banco do Brasil (Cemig D) |  |  | 2020 |  |  | 114% of CDI |  |  | 487 |
Banco do Brasil (Cemig D) |  |  | 2017 |  |  | 111% of CDI |  |  | 98 |
Debentures – 4th Issue (Gasmig) |  |  | 2022 |  |  | TJLP + 7.82 (75%) and Selic + 1.82 (25%) |  |  | 34 |
Debentures – 5th Issue (Gasmig) |  |  | 2018 |  |  | CDI + 1.60% |  |  | 100 |
Itaú Unibanco/Banco BBM (Cemig Telecom) |  |  | 2016 |  |  | 120% of CDI |  |  | 23 |
Total funding |  |  |  |  |  |  |  |  | 5,739 |
Eurobonds In December 2017 Cemig GT issued Eurobonds in the international market for a total of US$ 1,000, with six-monthly coupon, at 9.25% p.a. The 7-year issue has maturity in December 2024, with an option for prepayment, without premium after six years from issue. The issuance had a surety guarantee from the Company, and proceeds were used to amortize short-term debt. Fitch and Standard&Poors gave the issue the rating ‘B’. To protect against foreign exchange variation, concomitantly with the receipt of proceeds on December 5, 2017, Cemig GT contracted a hedge transaction, at the cost of 150.5% of the variation arising from the CDI, for the total amount including the interest, through a combination of interest rate swap and call spread on the principal (i.e. in which Cemig GT accepts that the protection is up to an agreed price level). The issuance deed had restrictive covenants and specified default events, which could generate early maturity of the debt. The package of covenants contains restrictions on investment, on indebtedness, on payment of dividends, and real guarantees, among other items, thus providing a combination of operational and financial flexibility for the issue and protection for investors. The covenants were defined according to the commonly accepted covenants for High Yield issues, and will cease to apply if and when Cemig GT is rated ‘investment grade’ by two rating agencies. Debentures The debentures issued by the Company’s subsidiaries are not convertible into shares, and have the following characteristics:
Issuer |  | Type of guarantee |  | Annual cost, % |  | Maturity |  |  | 2017 |  |  | 2016 |
Cemig GT – 3rd Issue – 1st Series |  | Unsecured |  | CDI Rate + 0.90% |  |  | 2017 |  |  |  | — |  |  |  | 543 |
Cemig GT – 3rd Issue – 2nd Series |  | Unsecured |  | IPCA + 6.00% |  |  | 2019 |  |  |  | 301 |  |  |  | 293 |
Cemig GT – 3rd Issue – 3rd Series |  | Unsecured |  | IPCA + 6.20% |  |  | 2022 |  |  |  | 1,011 |  |  |  | 984 |
Cemig GT – 5th Issue, 1st Series |  | Unsecured |  | CDI + 1.70% |  |  | 2018 |  |  |  | 703 |  |  |  | 1,411 |
Cemig GT – 6th Issue – 1st Series |  | Surety |  | CDI + 1.60% |  |  | 2018 |  |  |  | 508 |  |  |  | 1,041 |
Cemig GT – 6th Issue – 2nd Series |  | Surety |  | IPCA +8.07% |  |  | 2020 |  |  |  | 32 |  |  |  | 31 |
Cemig GT – 7th Issue – 1st Series |  | Receivables (Revenue) |  | 140.00% of CDI |  |  | 2021 |  |  |  | 1,683 |  |  |  | 2,242 |
Cemig D – 2nd Issue |  | None |  | IPCA + 7.96% |  |  | 2017 |  |  |  | — |  |  |  | 235 |
Cemig D – 3rd Issue – 1st Series |  | Surety |  | CDI + 0.69% |  |  | 2018 |  |  |  | 447 |  |  |  | 464 |
Cemig D – 3rd Issue – 2nd Series |  | Surety |  | IPCA + 4.70% |  |  | 2021 |  |  |  | 1,537 |  |  |  | 1,496 |
Cemig D – 3rd Issue – 3rd Series |  | Surety |  | IPCA + 5.10% |  |  | 2025 |  |  |  | 921 |  |  |  | 896 |
Cemig D – 4th Issue – single Series |  | Surety |  | CDI + 4.05% |  |  | 2018 |  |  |  | 20 |  |  |  | 1,627 |
Cemig D – 5th Issue – single Series |  | Surety /Receivables |  | 146.50% of CDI |  |  | 2022 |  |  |  | 1,576 |  |  |  | — |
Gasmig |  | Unsecured |  | CDI + 1.60% |  |  | 2018 |  |  |  | 100 |  |  |  | 101 |
Gasmig |  | Unsecured |  | CDI + 0.74% |  |  | 2018 |  |  |  | 34 |  |  |  | 67 |
Gasmig |  | Unsecured |  | TJLP+1.82% (75%); Selic+1.82% (25%) |  |  | 2022 |  |  |  | 155 |  |  |  | 133 |
Gasmig |  | Unsecured |  | 116.50% of CDI |  |  | 2019 |  |  |  | 50 |  |  |  | — |
CemigTelecom |  | Receivables |  | 128.50% of CDI |  |  | 2019 |  |  |  | 26 |  |  |  | — |
(–)   FIC Pampulha: Securities of subsidiary companies |  |  |  |  |  |  |  |  |  |  | (25 | ) |  |  | (65 | )
(–)   Transaction costs |  |  |  |  |  |  |  |  |  |  | (50 | ) |  |  | (79 | )
TOTAL |  |  |  |  |  |  |  |  |  |  | 9,029 |  |  |  | 11,420 |
For the debentures issued by the subsidiaries, there are no agreements for renegotiation, nor debentures held in treasury. There is an early maturity clause for cross-default in the event of non-payment, by Cemig GT or by the Company, of any pecuniary obligation with individual or aggregate value greater than R$ 50 million (“cross default”). Restrictive covenants The Company has contracts with covenants linked to financial index, as follows:
Title |  | Parameter |  | Ratio required – Issuer |  | Ratio required – Cemig (Guarantor) |  | Compliance required
Banco do Brasil: Bank Credit Notes, and Fixed Credit Cemig GT (1) |  | Net debt / (Ebitda + Dividends received) |  | The following, or less: 5.5 on June 30, 2018 5.0 on December 31, 2018 5.0 on June 30, 2019 4.5 on December 31, 2019 4.5 on June 30, 2020 3.0 on December 31, 2020 3.0 on June 30, 2021 2.5 on / after Dec. 31, 2021 |  | The following, or less: 4.5 on June 30, 2018 4.25 on December 31, 2018 4.25 on June 30, 2019 3.5 on December 31, 2019 3.5 on June 30, 2020 3.0 on December 31, 2020 3.0 on June 30, 2021 2.5 on / after Dec. 31, 2021 |  | Half-yearly
7th Debenture Issue Cemig GT (2) |  | Net debt / (Ebitda + Dividends received) |  | The following, or less: 5.5 in 2017 5.0 in 2018 4.5 in 2019 3.0 in 2020 2.5 in 2021 |  | The following, or less: 4.5 in 2017 4.25 in 2018 3.5 in 2019 3.0 in 2020 2.5 in 2021 |  | Half-yearly
Eurobonds Cemig GT (3) |  | Net debt / Ebitda adjusted for the Covenant |  | The following, or less: 5.5 on December 31, 2017 5.5 on June 30, 2018 5.0 on December 31, 2018 5.0 on June 30, 2019 4.5 on December 31, 2019 4.5 on June 30, 2020 3.0 on December 31, 2020 3.0 on June 30, 2021 2.5 on /after Dec. 31, 2021 |  | The following, or less: 5.0 on December 31, 2017 5.0 on June 30, 2018 4.25 on December 31, 2018 4.25 on June 30, 2019 3.5 on December 31, 2019 3.5 on June 30, 2020 3.0 on December 31, 2020 3.0 on June 30, 2021 3.0 on and after Dec. 31, 2021 |  | Half-yearly
Bank Credit Notes of Banco do Brasil and Caixa Econômica Federal; and 5th Debenture Issue CEMIG D (4) |  | Net debt / (Ebitda + Dividends received) |  | The following, or less: 7.5 on December 31, 2017 7.5 on June 30, 2018 4.5 on December 31, 2018 3.8 on June 30, 2019 3.8 on December 31, 2019 3.3 on June 30, 2020 3.3 on December 31, 2020 3.3 on June 30, 2021 3.3 on /after Dec. 31, 2021 |  | The following, or less: 4.5 on December 31, 2017 4.5 on June 30, 2018 4.25 on December 31, 2018 4.25 on June 30, 2019 3.5 on December 31, 2019 3.5 on June 30, 2020 3.0 on December 31, 2020 3.0 on June 30, 2021 2.5 on / after Dec. 31, 2021 |  | Half-yearly
| Current liquidity |  | 0.6x on/after Dec. 31, 2017 |  | 0.6x on/ after Dec. 31, 2027 |
|  | Overall indebtedness (Total liabilities/Total assets) |  | Less than 0.6 |  | — |  | Annual
Gasmig – Debentures (5) |  | Ebitda / Debt servicing |  | 1.3 or more |  | — |  | Annual
|  | Ebitda / Net finance income (expenses) |  | 2.5 or more |  | — |  | Annual
|  | Net debt / Ebitda |  | 2.5 or less |  | — |  | Annual
(1) | Through contractual amendments, a further early maturity clause was added to Cemig GT’s Bank Credit Notes and Fixed Credit Line with Banco do Brasil, requiring compliance with a financial ratio similar to that required by the 7th Debenture Issue.
(2) | 7th Issue of Debentures by Cemig GT, in December 2016, of R$ 2,240.
(3) | There is also an obligation to comply with a ‘maintenance’ covenant – which requires that the debt in Cemig Consolidated (as per financial statements), shall have asset guarantee for debt of 1.75x Ebitda (2.0 in December 2017); and a ‘damage’ covenant, requiring real guarantee for debt in Cemig GT of 1.5x Ebitda. In the event that ‘maintenance financial covenants’ are exceeded at any time, the interest rate will automatically be increased by 2% p.a. as long as the excess continues.
(4) | The Bank Credit Notes of Banco do Brasil and Caixa Econômica Federal were amended in December 2017, to include requirement for 6-monthly compliance with covenants as described above. The 5th Debenture Issue included demand ability of compliance with the Covenants.
(5) | If Gasmig does not achieve the required covenants, Gasmig must, within 120 days from the date of notice in writing from BNDES or BNDESPar, constitute guarantees acceptable to the debenture holders for the total amount of the debt, subject to the rules of the National Monetary Council (CMN), unless the required ratios are restored within that period. Cross-default: Certain contractually specified situations can cause early maturity of other debts.
As of December 31, 2017, the Company was in compliance with the covenants requiring annual and semi-annual compliance.

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