Gaúcha TecPar Group Company May Issue R$ 400 Million in Debentures

Authorized by the Ministry of Communications, the funds will be used for network expansion and the construction of a data center. The priority project will serve the states of Rio Grande do Sul, Santa Catarina, Paraná, Mato Grosso, Mato Grosso do Sul, Goiás, the Federal District, Minas Gerais, São Paulo, Rio de Janeiro, and Espírito Santo.

The project includes the expansion of the transport network, access network, local wireless network, data center, machine-to-machine communication network (including Internet of Things – IoT), subfluvial cable, telecommunications network infrastructure, and infrastructure for network virtualization in telecommunications.

Earlier this year, the group issued securities equivalent to R$ 175 million, aimed at completing the interconnection of networks in the South, Southeast, and Midwest regions; reducing operating costs and improving EBITDA margin. Funds were also allocated to complete the digitization of operational processes, enhance customer experience, extend short-term debt maturities, and expand long-distance networks in the Midwest. These projects were also approved by the Ministry of Communications and marked Brasil TecPar’s entry into the capital markets.

The use of incentivized debentures results in a reduction of the income tax (IR) applied to investment gains. For individual investors, the tax is fully exempt, with no charges on investment returns. For companies (legal entities), the tax rate is reduced from 22.5% to 15%.