Eletrobras bonds drop after company delays SEC filing

jueves 30 de abril de 2015 12:25 GYT
 

By Davide Scigliuzzo

NEW YORK, April 30 (IFR) - Prices on Eletrobras bonds dropped as much as three points on Thursday after the Brazilian state-run power company delayed the filing of its annual report with the SEC.

Eletrobras said it is investigating whether the chief executive of subsidiary Eletronuclear got illegal payments as part of corruption at state-controlled oil company Petrobras.

Eletrobras has received board approval to hire an independent firm to conduct an external investigation.

Its 2019s bonds were offered on Thursday morning at a cash price of 98 after closing on Wednesday at around 100.75, while its 2021s were last spotted at around 93, down from 95.5 on Wednesday, according to a corporate bond trader in New York.

"People would rather get rid of exposure right away than being heroes and keep the view they have," said the trader. "Real money accounts were looking to sell."

Eletrobras said in a regulatory filing on Thursday that it was unable to file its annual report with the SEC by the April 30 deadline.

In addition to the Eletronuclear investigation, it said, a change of auditing firms for its Jirau unit was also to blame for the delay. (Reporting by Davide Scigliuzzo; Editing by Paul Kilby and Natalie Harrison)