Consolidated gross debt as at December 31, 2012 amounted to R$ 3,694.5 million, representing a 27.3% increase in relation to the close of FY 2011, chiefly due to additional fund raising carried out during the course of the period, namely: the 6th issue of promissory notes effected in the first quarter of 2012; the 2nd issue of debentures, in a single series, in July 2012; and the 3rd issue of promissory notes by IEMadeira in September 2012
Approximately 85.0% of CTEEP`s debt is pegged to CDI and TJLP rates, being BNDES largest creditor of the Company, accounting for 39.1% of the total debt.
Debt Breakdown:
Debt Service Charges:
At the close of 2012, CTEEP`s net debt amounted to R$ 3,265.2 million, up 27.3% year-over-year. The Company`s indebtedness ratio stood at 63.9% in 2012.
| Loans and Financing | Consolidated | |
| (R$ million) | 2011 | 2012 |
| Gross Debt | 2.771,4 | 3.694,5 |
| Short Term | 1.397,5 | 1.302,2 |
| Long Term | 1.373,9 | 2.392,2 |
| Highly-Liquid Assets | 207,3 | 429,2 |
| Cash & Cash Equivalents | 207,3 | 429,2 |
| Net Debt | 2.564,1 | 3.265,2 |
As a contractual obligation set out in its financing agreements, the Company must meet quarterly and yearly financial covenants, based on both quarterly information and annual financial statements for the corresponding fiscal periods, which are prepared in accordance with generally accepted accounting practices in Brazil. The Company’s main covenant is the Net Debt/EBITDA ratio, which must be less than or equal to 3.5 times. At the close of FY 2012, CTEEP`s Net Debt/EBITDA ratio stood at 2.2 times.
Capital Structure :
