Brazilian Utilities: July 2026 - Capital raising and regulatory developments

Research evidence excerpt

Brazilian Utilities: July 2026 - Capital raising and regulatory developments

Global Research

31 July 2026ab

Brazilian Utilities Equities

AmericasJuly 2026 – Capital raising and regulatory

developments Utilities

Giuliano Ajeje

Analyst

giuliano.ajeje@ubs.com

Capital allocation – capital raising preceded key regulatory decisions +55-11-2767 6371

July provided additional evidence on the question raised in June. The sector raised Henrique Simoes

or proposed roughly R$14bn of equity and quasi-equity in four weeks, indicating Associate Analyst

improved access to capital for several issuers. Engie priced a R$8.36bn follow-on at henrique.simoes@ubs.com

R$30.50 to consolidate the 40% of Jirau it did not own — R$5.7bn subscribed by the +55-11-2767 6308

controller in shares, around R$2.6bn in new cash (1) — days after Aneel extended Julia Ongarato

the plant's concession by 615 days, to August 2047 (2). ISA Energia doubled its offer Associate Analyst

to R$1.2bn at R$27 (3). Light homologated a R$1.5bn capital increase at R$6.29, julia.ongarato@ubs.com

filed to exit judicial recovery (4) and now has BTG at 18.76% of the equity (5). Itaú +55-11-2767 6694

injected R$1.4bn into Energisa's holding Denerge for roughly 9.98% of its capital (6),

and Aegea called a shareholder meeting for a R$1.5–2.1bn increase after Fitch cut it

to B+ (7). For the issuers that completed or proposed transactions in July, access to

capital appears less restrictive than earlier in the year. The investable question is

which pending regulatory decisions could convert that capital into contracted cash

flow, and on what timeline.

A second material development addressed compensation for historical curtailment.

The MME's (Ministry of Mines and Energy) Portaria 140 fixed roughly R$3.3bn of