Cemig intends to issue 4-year notes 1H04

Brazil's Minas Gerais power distributor Cemig is to issue 4-year notes in the first half of 2004, according to the company's financial and investor relations director Flavio Decat de Moura. The move is part of a strategy to change Cemig's debt profile. "This will be an operation structured for the medium term," said Moura, speaking at the opening of the day's trade at the New York Stock Exchange. He added that the purpose of the operation is to allow Cemig to lengthen its dollar debt profile in the short term so that this parcel of the total is 100% hedged for 12 months. "At present we have 4.5 months of hedged maturities. We want the [hedged] period for our total dollar debt to turn into 12 months," he said. Moura explained that the company's US$478 million dollar debt is only 20% hedged ($80 million). "We not only wish to reduce our dollar-linked percentage of total debt but mainly hope to lengthen it and make it 100% hedged," explained Moura. by Fabio Alves