Transmissora SP-MG files request to sell BRL428M local notes

Transmissora SP-MG files request to sell BRL428M local notes

Transmissora SP-MG Files Request to Sell BRL428 Million in Local Notes
February 20, 2026

Transmissora SP-MG SA, a Brazilian energy transmission infrastructure operator, has submitted a formal request to issue BRL428 million in local currency notes. The transaction, which is subject to approval by relevant authorities, aims to strengthen the company's liquidity position and fund ongoing infrastructure maintenance and expansion projects.

The proposed issuance aligns with broader market activity in Brazil's debt markets. Earlier this week, the Brazilian government successfully sold USD4.5 billion in global notes, reflecting strong international investor appetite for emerging market debt. While Transmissora SP-MG's offering is denominated in Brazilian reais, the timing suggests the company is leveraging favorable market conditions to secure cost-effective financing.

Transmissora SP-MG, which operates high-voltage transmission lines connecting São Paulo and Minas Gerais, plays a critical role in Brazil's energy grid. The company has emphasized that proceeds from the note issuance will prioritize grid reliability improvements and compliance with regulatory obligations. Analysts note that robust financing activity in Brazil's energy sector underscores the government's focus on modernizing infrastructure to meet rising demand.

The transaction highlights the growing participation of infrastructure firms in local debt markets. However, investors are advised to monitor macroeconomic risks, including inflationary pressures and potential shifts in monetary policy, which could impact borrowing costs. Fitch Ratings, which has previously evaluated the company's credit profile, remains a key observer of its financial strategy.

No further details regarding the notes' maturity, coupon structure, or pricing have been disclosed at this stage. The Brazilian securities regulator is expected to review the application in the coming weeks.

(https://www.fitchratings.com/entity/edp-transmissao-sp-mg-sa-96784533): Fitchratings.com
(https://latinfinance.com/daily-brief/2026/02/09/brazil-sells-4-5-bln-in-global-notes/): LatinFinance.com

(Word count: 300)