MPX: BNDES Approves Long Term Financing for Itaqui

BNDES' Long Term Financing Package Totals R$ 1.038 Billion


RIO DE JANEIRO, BRAZIL--(Marketwire - December 9, 2009) - MPX Energia S.A. (BOVESPA: MPXE3) (GDR I: MPXEY) ("MPX"), informs that BNDES (Banco Nacional de Desenvolvimento Econômico e Social) approved a long term financing package for the Porto do Itaqui TPP, ("Itaqui" or "project"), a project fully owned by MPX.

The final approval of the financing package not only reinforces the feasibility and importance of this enterprise, but also shows that the Company is able to design robust and assertive strategies for technical, environmental and financial risk mitigation.

BNDES' loan, amounting to R$ 1.038 billion (in nominal R$, including interest during construction), will have a 17-year tenure, with a 14-year amortization period, and a grace period for interest and principal until July 2012. The financing package comprises of a direct loan of R$ 797 million, at an annual cost of TJLP + 2.78%, and indirect loans totaling R$ 241 million, of which R$ 100 million at an annual cost of IPCA + 12.1-12.6% and R$ 141 million at TJLP + 4.5-5.0%. During construction, interest will be capitalized.

In addition to BNDES' financing package, Itaqui should also receive R$ 203 million in long term financing from the Banco do Nordeste do Brasil ("BNB"). Such credit line is in final stage for approval. Considering the total required capex and financing packages from BNB and BNDES, the project will have a capital structure of approximately 75% debt/25% equity.

Itaqui is part of the Brazilian Government's Growth Acceleration Program ("PAC") and represents an important step towards the diversification of the country's energy matrix, increasing the reliability of electricity supply.

The plant will use clean-coal technology, complying with the most rigorous legal requirements of the Brazilian law as well as international agencies. So as to foster Brazil's sustainable development, MPX will go beyond legal requirements and will implement a vast plan for greenhouse gas reduction. Moreover, MPX intends to allocate a significant part of its R&D budget to the development of carbon sequestration technologies.

Porto do Itaqui TPP

Porto do Itaqui TPP project consists in a 360 MW coal-fired thermal plant, in the State of Maranhão. Itaqui has already contracted 315 average MW in the regulated market, securing annual fixed revenues of R$ 252.0 million (as of Sep 09). According to the implementation schedule, commercial operation should start before January 2012, when the commitment to deliver energy to the regulated market begins.

Rio de Janeiro, December 9, 2009.
Eduardo Karrer
CEO and IR Officer

Contact Information: Investor Relations: Flavia Heller +55 21 2555-4244 Daniel Haddad +55 21 2555-4015 ri.mpx@mpx.com.br www.mpx.com.br/ri Press Relations: Roberto Gonzales +55 21 2555-4695 +55 21 8011-0101