Credit Market Update. Fixed Income Research. Highlights of the week. BTG Pactual Global Research. Brazil Strategy FixedIncome 22 July 2016

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1 Fixed Income Research BTG Pactual Global Research Credit Market Update Brazil Strategy FixedIncome 22 July 2016 Highlights of the week Local corporate debt market Copel Geração e Transmissão: the company concluded the issuance of R$1.0bn in debentures (CVM#476) via a single series, yielding 121% of the DI rate and maturing in three years (equal amortizations in the final two years). The issuance received an AA+(bra) rating from Fitch. Companhia Brasileira de Distribuição: the company approved the issuance of R$500mn in Promissory Notes (CVM#476), yielding 108% of the DI rate and maturing in 180 days. CBD has an AA+(bra) rating with Fitch. Duke Energy Paranapanema: the company approved the issuance of R$160mn in debentures (CVM#476) via a single series, featuring a yield of DI+2.00% and a 2-year bullet maturity. The issuance received an Aa1.br rating from Moody s. Matheus Chermauth Brazil Banco BTG Pactual S.A. matheus.chermauth@btgpactual.com Thomas Tenyi, CFA New York BTG Pactual US Capital LLC thomas.tenyi@btgpactual.com Beatriz Watanabe Brazil Banco BTG Pactual S.A. beatriz.watanabe@btgpactual.com Secondary debentures market Trading volume in the secondary debentures market in the period July 14 July 20 totaled R$509.08mn (vs. R$443.75mn in the previous week), with 133 assets traded. The main weekly highlights were STEN23 Santo Antônio Energia (R$40.02mn traded at IPCA+9.48%, with curve of IPCA+7.49%), TAEE33 TAESA (R$33.02mn traded at IPCA+8.86%, with curve of IPCA+5.10%) and SBESB7 Sabesp (R$30.49mn traded at IPCA+8.95%, with curve of IPCA+4.50%). YTD trading volume in the secondary debentures market now stands at R$20.07bn (daily average of R$146.5mn). [Text] DISCLAIMERS PERTINENTES A ESTE RELATÓRIO INICIAM NA PÁGINA 12 Banco BTG Pactual S.A. mantém, ou tem a intenção de manter, relações comerciais com a(s) companhia(s) coberta(s) neste relatório. Por esta razão, investidores devem estar cientes de eventuais conflitos de interesse que potencialmente possam afetar os objetivos deste relatório. Investidores devem considerar este relatório apenas como mais um fator no processo de tomada de decisão de seus investimentos. Qualquer Cidadão Norte-Americano Especificado como US Person(USP) que receber este relatório e desejar realizar uma operação com valores mobiliários analisados neste relatório, deverão fazê-lo com o BTG Pactual US Capital, LLC , 601 Lexington Avenue. 57º andar, Nova York NY

2 22 July 2016 page 2 [Heading 1] Table 1: Trades in Brazilian secondary debentures market* Trades in secondary debentures market Jul-16 Ratings Date Issuer Security Code Amount Number of trades Source: ANBIMA, Rating Agency. *Trade rate considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. % Face Value Volume (BRL mn) Trade rate (%) Benchmark brbbb- 14-Jul-16 AES Sul AESL ND DI+ ND 4.75 braa- 14-Jul-16 Algar Telecom ALGA22 2, IPCA A3.br 14-Jul-16 Conc. Rota das Bandeiras CBAN ND IPCA+ ND 9.57 bra 14-Jul-16 Cemig Geração e Transmissão CMTR13 13, DI bra 14-Jul-16 Cemig Geração e Transmissão CMTR IPCA bra 14-Jul-16 Cemig Geração e Transmissão CMTR IPCA A1.br 14-Jul-16 Centrovias CSSA DI A1.br 14-Jul-16 Centrovias CVIA IPCA braa- 14-Jul-16 Ecorodovias ECCR DI braa- 14-Jul-16 Energisa ENGI ND ND IPCA+ ND 9.23 braa- 14-Jul-16 Comgas GASP DI Aa2.br 14-Jul-16 MGI - Minas Gerais Part. MMGP ND DI+ ND 3.25 braa+ 14-Jul-16 Sabesp SBESB IPCA brbbb+ 14-Jul-16 Sul America SULM %DI braa- 14-Jul-16 TAESA TAEE IPCA A-(bra) 14-Jul-16 Triunfo TPIS IPCA brbbb- 15-Jul-16 AES Sul AESL ND DI+ ND 4.75 brbbb- 15-Jul-16 AES Sul AESS ND DI+ ND 1.25 AA+(bra) 15-Jul-16 BR Malls BRML IPCA bra 15-Jul-16 BR Properties BRPR ND IPCA+ ND 5.85 bra 15-Jul-16 Cemig Geração e Transmissão CMTR DI bra 15-Jul-16 Cemig Geração e Transmissão CMTR IPCA bra 15-Jul-16 Cemig Geração e Transmissão CMTR IPCA braa- 15-Jul-16 Ecorodovias ECCR IPCA A2.br 15-Jul-16 Ecorodovias Infraestrutura e Logística ECOR DI braa+ 15-Jul-16 Iguatemi Shopping Centers IGTA DI bra+ 15-Jul-16 JSL JSML DI A-(bra) 15-Jul-16 Restoque Comercio e Confecções RSCC %DI braa+ 15-Jul-16 Sabesp SBESB IPCA braa- 15-Jul-16 TAESA TAEE13 3, DI braa- 15-Jul-16 TAESA TAEE IPCA braa- 15-Jul-16 TAESA TAEE33 1, IPCA brbbb- 18-Jul-16 AES Sul AESS ND DI+ ND 1.25 AA(bra) 18-Jul-16 Águas Guariroba AGGU DI Aa2.br 18-Jul-16 Autovias AVIA21 15, IPCA AA+(bra) 18-Jul-16 BR Malls BRML DI AA+(bra) 18-Jul-16 BR Malls BRML IPCA bra 18-Jul-16 BR Properties BRPR ND IPCA+ ND 5.85 bra 18-Jul-16 Cemig Geração e Transmissão CMTR DI bra 18-Jul-16 Cemig Geração e Transmissão CMTR23 1, IPCA Aa2.br 18-Jul-16 Intervias S.A. CRIP DI Jul-16 Casadoce CSDC %DI Jul-16 Casadoce CSDC %DI A2.br 18-Jul-16 Copasa CSMG ND %DI ND bra- 18-Jul-16 Eletropaulo ELSPA DI braa- 18-Jul-16 Energisa ENGI ND IPCA+ ND 9.23 braa+ 18-Jul-16 Iguatemi Shopping Centers IGTA DI bra+ 18-Jul-16 JSL JSML DI AA-(bra) 18-Jul-16 Lojas Americanas LAME %DI AA(bra) 18-Jul-16 Libra Terminal Rio LBRA DI braa+ 18-Jul-16 Localiza LORT %DI Jul-16 MTEL Tecnologia MTEL ND %DI ND 130 braa+ 18-Jul-16 Sabesp SBESB7 1, IPCA braa- 18-Jul-16 TAESA TAEE13 1, DI braa- 18-Jul-16 TAESA TAEE IPCA braa- 18-Jul-16 TAESA TAEE33 23, IPCA bra+ 18-Jul-16 Termopernambuco S.A. TERP DI braa- 18-Jul-16 Triângulo do Sol TSAE ND DI+ ND 2.25 brbbb- 19-Jul-16 AES Sul AESS ND DI+ ND 1.25 braa- 19-Jul-16 Algar Telecom ALGA IPCA braa- 19-Jul-16 Ampla AMPL IPCA AA+(bra) 19-Jul-16 BR Malls BRML IPCA (Years) Issuance rate (%)

3 22 July 2016 page 3 Table 2: Trades in Brazilian secondary debentures market Trades in secondary debentures market Jul-16 Ratings Date Issuer Security Code Amount Number of trades Source: ANBIMA, Rating Agency. *Trade rate considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. % Face Value Volume (BRL mn) Trade rate (%) Benchmark bra 19-Jul-16 Cemig Distribuição CMDT23 7, IPCA bra 19-Jul-16 Cemig Geração e Transmissão CMTR DI bra 19-Jul-16 Cemig Geração e Transmissão CMTR15 1, DI bra 19-Jul-16 Cemig Geração e Transmissão CMTR IPCA bra 19-Jul-16 Cemig Geração e Transmissão CMTR33 7, IPCA AA+(bra) 19-Jul-16 Copel CPEL %DI A2.br 19-Jul-16 Copasa CSMG ND %DI ND braa- 19-Jul-16 Ecorodovias ECCR IPCA braa- 19-Jul-16 Energisa ENGI ND IPCA+ ND 9.23 AA+(bra) 19-Jul-16 Cemar ENMA ND IPCA+ ND 5.9 braa+ 19-Jul-16 Localiza LORT %DI braa- 19-Jul-16 MRV Engenharia MRVE DI braa- 19-Jul-16 Arteris OHLB ND DI+ ND 1.28 braa- 19-Jul-16 Rodovias das Colinas RDCO ND DI+ ND 1.5 A2.br 19-Jul-16 ViaLagos RDLA13 3, ND %DI ND 118 braa+ 19-Jul-16 Sabesp SBESB IPCA bra+ 19-Jul-16 Sabesp SBSPA DI bra+ 19-Jul-16 Sabesp SBSPB DI braa- 19-Jul-16 TAESA TAEE IPCA Aa1.br 19-Jul-16 AES Tietê TIET DI A-(bra) 19-Jul-16 Triunfo TPIS IPCA braa- 19-Jul-16 Triângulo do Sol TSAE IPCA bra+ 19-Jul-16 Unidas UNDA ND IPCA+ ND 8.39 brbbb- 20-Jul-16 AES Sul AESL ND DI+ ND 4.75 braa- 20-Jul-16 Ampla AMPL DI braa- 20-Jul-16 Ampla AMPL IPCA braa- 20-Jul-16 AutoBan ANHB14 4, %DI AA+(bra) 20-Jul-16 BR Malls BRML DI bra- 20-Jul-16 Andrade Gutierrez Part. CANT ND ND DI+ ND 1.38 A3.br 20-Jul-16 Conc. Rota das Bandeiras CBAN ND IPCA+ ND 9.57 bra- 20-Jul-16 Intercement Brasil S.A. CCCI %DI AAA(bra) 20-Jul-16 Cielo CIEL %DI bra 20-Jul-16 Cemig Distribuição CMDT23 4, IPCA bra 20-Jul-16 Cemig Geração e Transmissão CMTR13 2, DI bra 20-Jul-16 Cemig Geração e Transmissão CMTR IPCA bra 20-Jul-16 Cemig Geração e Transmissão CMTR IPCA AA(bra) 20-Jul-16 CPFL Geração de Energia CPGE DI braa 20-Jul-16 Cia Paulista de Securitização CPSC ND DI+ ND 2.5 A2.br 20-Jul-16 Copasa CSMG ND DI+ ND 0.94 braa- 20-Jul-16 Diagnósticos da América DASA15 5, DI A2.br 20-Jul-16 Ecorodovias Infraestrutura e Logística ECOR DI A1.br 20-Jul-16 EDP - Energias Do Brasil ENBR ND ND DI+ ND 2.24 AA+(bra) 20-Jul-16 Cemar ENMA ND DI+ ND 1.08 braa- 20-Jul-16 Duke Energy Intl Geração GEPA DI braa+ 20-Jul-16 Iguatemi Shopping Centers IGTA DI bra+ 20-Jul-16 JSL JSML IPCA AA-(bra) 20-Jul-16 Lojas Americanas LAME %DI braa+ 20-Jul-16 Localiza LORT %DI braa+ 20-Jul-16 Localiza LORT ND ND %DI ND Baa3.br 20-Jul-16 Mills Estr. e Serviços de Eng. MILS DI braa- 20-Jul-16 MRS Logística MRSS ND DI+ ND Jul-16 Maestro Locadora de Veículo MSTL ND DI+ ND 4.25 A2.br 20-Jul-16 ViaLagos RDLA13 5, ND %DI ND 118 A-(bra) 20-Jul-16 Restoque Comercio e Confecções RSCC %DI A1.br 20-Jul-16 SANEPAR SAPR %DI A1.br 20-Jul-16 SANEPAR SAPR %DI braa+ 20-Jul-16 Sabesp SBESB IPCA bra+ 20-Jul-16 Sabesp SBSPB DI braa- 20-Jul-16 TAESA TAEE13 4, DI braa- 20-Jul-16 TAESA TAEE33 2, IPCA Aaa.br 20-Jul-16 Telefonica Brasil S/A TFBR DI bra+ 20-Jul-16 Unidas UNDA DI (Years) Issuance rate (%)

4 22 July 2016 page 4 Table 3: Trades in Brazilian secondary debentures market Infra Debentures* Trades in secondary debentures market Jul-16 Ratings Date Issuer Security Code Amount Number of trades Source: ANBIMA, Rating Agency. *Trade rate considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. % Face Value Volume (BRL mn) Trade rate (%) Benchmark BBB(bra) 14-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA BBB(bra) 14-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU ND IPCA+ ND 6.4 BBB(bra) 14-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA BBB(bra) 14-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA BBB(bra) 14-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA braa- 14-Jul-16 AutoBan ANHB ND IPCA+ ND Jul-16 Copel Telecomunicações CTEL ND IPCA+ ND braa- 14-Jul-16 Ecovias ECOV IPCA A1.br 14-Jul-16 EDP - Energias Do Brasil ENBR ND IPCA+ ND A1.br 14-Jul-16 EDP - Energias Do Brasil ENBR ND IPCA A1.br 14-Jul-16 EDP - Energias Do Brasil ENBR ND IPCA AA+(bra) 14-Jul-16 Ferreira Gomes Energia FGEN ND ND IPCA+ ND braa- 14-Jul-16 Comgas GASP IPCA braa- 14-Jul-16 Comgas GASP IPCA braa- 14-Jul-16 Comgas GASP IPCA braa- 14-Jul-16 MRS Logística MRSL IPCA bra+ 14-Jul-16 NC Energia NCEN ND IPCA+ ND A2.br 14-Jul-16 ViaLagos RDLA IPCA braa- 14-Jul-16 Rodonorte RDNT IPCA Baa2.br 14-Jul-16 Concessionária Rodovias do Tietê RDVT11 4, IPCA braaa 14-Jul-16 Raízen Energia S.A. RESA IPCA Aa2.br 14-Jul-16 Rodovias Integradas do Oeste RVIO IPCA Jul-16 Santo Antônio Energia SAES ND IPCA+ ND Jul-16 Salus Infraestrutura Portuária SAIP ND ND IPCA+ ND bra 14-Jul-16 Santo Antônio Energia STEN IPCA AAA(bra) 14-Jul-16 Tractebel Energia TBLE IPCA Aa1.br 14-Jul-16 AES Tietê TIET ND IPCA+ ND braaa 14-Jul-16 Vale VALE IPCA braaa 14-Jul-16 Vale VALE29 1, IPCA AA+(bra) 14-Jul-16 VLI Multimodal VLIM IPCA AA(bra) 14-Jul-16 Ventos de São Tito Holdings VNTT ND IPCA+ ND BBB(bra) 15-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU ND IPCA+ ND 6.4 braa- 15-Jul-16 AutoBan ANHB IPCA braa- 15-Jul-16 AutoBan ANHB ND IPCA+ ND braa- 15-Jul-16 AutoBan ANHB ND IPCA bra- 15-Jul-16 Concessionária Auto Raposo Tavares CART IPCA Jul-16 Copel Telecomunicações CTEL ND IPCA+ ND braa- 15-Jul-16 Ecovias ECOV IPCA A1.br 15-Jul-16 EDP - Energias Do Brasil ENBR ND IPCA+ ND A1.br 15-Jul-16 EDP - Energias Do Brasil ENBR ND IPCA AA+(bra) 15-Jul-16 Ferreira Gomes Energia FGEN13 1,548 5 ND ND IPCA+ ND braa- 15-Jul-16 Comgas GASP IPCA braa- 15-Jul-16 Comgas GASP IPCA braa- 15-Jul-16 MRS Logística MRSL IPCA braa- 15-Jul-16 MRS Logística MRSL IPCA bra+ 15-Jul-16 NC Energia NCEN ND IPCA+ ND A2.br 15-Jul-16 ViaLagos RDLA IPCA braa- 15-Jul-16 Rodonorte RDNT IPCA Baa2.br 15-Jul-16 Concessionária Rodovias do Tietê RDVT11 1, IPCA braaa 15-Jul-16 Raízen Energia S.A. RESA IPCA Jul-16 Salus Infraestrutura Portuária SAIP11 1, ND ND IPCA+ ND BBB+(bra) 15-Jul-16 Saneatins SNTI ND IPCA+ ND A+(bra) 15-Jul-16 Supervia SPVI ND IPCA+ ND 7.5 bra 15-Jul-16 Santo Antônio Energia STEN IPCA A-(bra) 15-Jul-16 Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 A-(bra) 15-Jul-16 Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 A-(bra) 15-Jul-16 Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 A-(bra) 15-Jul-16 Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 Aa1.br 15-Jul-16 AES Tietê TIET ND IPCA+ ND AA(bra) 15-Jul-16 Ventos de São Tomé Holding TOME ND IPCA+ ND braaa 15-Jul-16 Vale VALE IPCA braaa 15-Jul-16 Vale VALE IPCA (Years) Issuance rate (%)

5 22 July 2016 page 5 Table 4: Trades in Brazilian secondary debentures market Infra Debentures* Trades in secondary debentures market Jul-16 Ratings Date Issuer Security Code Amount Number of trades Source: ANBIMA, Rating Agency. *Trade rate considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. % Face Value Volume (BRL mn) Trade rate (%) Benchmark braaa 15-Jul-16 Vale VALE IPCA braaa 15-Jul-16 Vale VALE38 2, IPCA AA+(bra) 15-Jul-16 VLI Multimodal VLIM IPCA AA(bra) 15-Jul-16 Ventos de São Tito Holdings VNTT ND IPCA+ ND BBB(bra) 18-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU12 1, ND IPCA+ ND 6.4 BBB(bra) 18-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA braa- 18-Jul-16 AutoBan ANHB IPCA A1.br 18-Jul-16 EDP - Energias Do Brasil ENBR ND IPCA+ ND A1.br 18-Jul-16 EDP - Energias Do Brasil ENBR ND IPCA AA+(bra) 18-Jul-16 Ferreira Gomes Energia FGEN ND ND IPCA+ ND braa- 18-Jul-16 Comgas GASP IPCA braa- 18-Jul-16 Comgas GASP IPCA braa- 18-Jul-16 MRS Logística MRSL IPCA A2.br 18-Jul-16 ViaLagos RDLA IPCA braa- 18-Jul-16 Rodonorte RDNT IPCA Baa2.br 18-Jul-16 Concessionária Rodovias do Tietê RDVT IPCA Jul-16 Salus Infraestrutura Portuária SAIP ND ND IPCA+ ND A+(bra) 18-Jul-16 Supervia SPVI ND IPCA+ ND 7.5 bra 18-Jul-16 Santo Antônio Energia STEN IPCA AAA(bra) 18-Jul-16 Tractebel Energia TBLE IPCA braaa 18-Jul-16 Vale VALE IPCA braaa 18-Jul-16 Vale VALE IPCA braaa 18-Jul-16 Vale VALE IPCA braaa 18-Jul-16 Vale VALE29 1, IPCA braaa 18-Jul-16 Vale VALE IPCA braaa 18-Jul-16 Vale VALE IPCA AA+(bra) 18-Jul-16 VLI Multimodal VLIM IPCA AA(bra) 18-Jul-16 Ventos de São Tito Holdings VNTT ND IPCA+ ND Aa1.br 18-Jul-16 ViaOeste VOES ND IPCA+ ND 5.67 BBB(bra) 19-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA BBB(bra) 19-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU12 1, ND IPCA+ ND 6.4 braa- 19-Jul-16 AutoBan ANHB IPCA braa- 19-Jul-16 AutoBan ANHB ND IPCA+ ND braa- 19-Jul-16 AutoBan ANHB ND IPCA AA+(bra) 19-Jul-16 Alupar Investimento APAR IPCA Jul-16 Copel Telecomunicações CTEL ND IPCA+ ND braa- 19-Jul-16 Ecovias ECOV IPCA A1.br 19-Jul-16 EDP - Energias Do Brasil ENBR ND IPCA+ ND AA+(bra) 19-Jul-16 Ferreira Gomes Energia FGEN ND ND IPCA+ ND braa- 19-Jul-16 Comgas GASP23 2, IPCA braa- 19-Jul-16 Comgas GASP IPCA Jul-16 Interligação Eletrica do Madeira S/A IEMD ND IPCA+ ND 5.5 braa- 19-Jul-16 MRS Logística MRSL IPCA A2.br 19-Jul-16 ViaLagos RDLA IPCA braa- 19-Jul-16 Rodonorte RDNT IPCA Baa2.br 19-Jul-16 Concessionária Rodovias do Tietê RDVT11 5, IPCA Jul-16 Salus Infraestrutura Portuária SAIP ND ND IPCA+ ND A+(bra) 19-Jul-16 Supervia SPVI ND IPCA+ ND 7.5 bra 19-Jul-16 Santo Antônio Energia STEN IPCA bra 19-Jul-16 Santo Antônio Energia STEN IPCA Aa1.br 19-Jul-16 AES Tietê TIET ND IPCA+ ND braaa 19-Jul-16 Vale VALE IPCA braaa 19-Jul-16 Vale VALE IPCA braaa 19-Jul-16 Vale VALE38 2, IPCA braaa 19-Jul-16 Vale VALE IPCA AA+(bra) 19-Jul-16 VLI Multimodal VLIM IPCA AA(bra) 19-Jul-16 Ventos de São Tito Holdings VNTT ND IPCA+ ND BBB(bra) 20-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA BBB(bra) 20-Jul-16 Concessionária do Aeroporto Intl Guarulhos AGRU12 1, ND IPCA+ ND Jul-16 Chapada do Piauí I CHPA ND IPCA+ ND braa- 20-Jul-16 Ecovias ECOV IPCA A1.br 20-Jul-16 EDP - Energias Do Brasil ENBR15 1, ND IPCA+ ND (Years) Issuance rate (%)

6 22 July 2016 page 6 Table 5: Trades in Brazilian secondary debentures market Infra Debentures* Trades in secondary debentures market Jul-16 Ratings Date Issuer Security Code Amount Number of trades Source: ANBIMA, Rating Agency. *Trade rate considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. % Face Value Volume (BRL mn) Trade rate (%) Benchmark AA+(bra) 20-Jul-16 Ferreira Gomes Energia FGEN ND 0.82 ND IPCA+ ND 6.47 braa- 20-Jul-16 Comgas GASP IPCA Jul-16 Interligação Eletrica do Madeira S/A IEMD ND IPCA+ ND 5.50 braa- 20-Jul-16 MRS Logística MRSL27 2, IPCA bra+ 20-Jul-16 NC Energia NCEN11 2, ND IPCA+ ND 7.89 brb- 20-Jul-16 Norte Brasil Transmissora de Energia NRTB ND IPCA+ ND 7.15 A2.br 20-Jul-16 ViaLagos RDLA12 2, IPCA Baa2.br 20-Jul-16 Concessionária Rodovias do Tietê RDVT11 1, IPCA Aa2.br 20-Jul-16 Rodovias Integradas do Oeste RVIO14 1, IPCA Jul-16 Salus Infraestrutura Portuária SAIP ND 0.73 ND IPCA+ ND 6.79 A+(bra) 20-Jul-16 Supervia SPVI ND IPCA+ ND 7.50 bra 20-Jul-16 Santo Antônio Energia STEN23 1, IPCA AAA(bra) 20-Jul-16 Tractebel Energia TBLE15 2, IPCA AA(bra) 20-Jul-16 Ventos de São Tomé Holding TOME ND IPCA+ ND 8.86 braaa 20-Jul-16 Vale VALE IPCA braaa 20-Jul-16 Vale VALE IPCA AA+(bra) 20-Jul-16 VLI Multimodal VLIM IPCA AA(bra) 20-Jul-16 Ventos de São Tito Holdings VNTT ND IPCA+ ND 9.24 (Years) Issuance rate (%) Chart 1: Most traded debentures (14/Jul/2016 to 20/Jul/2016) BRML22 9,2 TAEE13 10,0 AESL43 10,4 CMDT23 12,3 RDVT11 16,1 CMTR13 18,3 CMTR15 20,0 SBESB7 30,5 ENBR15 32,2 TAEE33 33,0 STEN23 40,0 DASA15 62,5 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 Source: ANBIMA / BTG Pactual (BRL millions) Chart 2: Most traded debentures 2016YTD MAQN11 157,3 BNDP36 162,3 MRVE17 174,1 SBSPA9 183,6 MULP13 184,0 BRPR15 208,6 RSCF41 231,1 CTEL11 233,4 CCHOA8 322,3 CMTR15 328,9 CIEL14 354,3 CEMT25 737, Source: ANBIMA / BTG Pactual (BRL millions)

7 22 July 2016 page 7 Table 6: Issuances distributed in the Brazilian local market Issuer Date of bookbuilding Type Volume of issuance (R$ MM) Volume issued (R$ MM) CCR dez-15 DEB 476 R$ R$ Y %DI % % Fitch AA+(bra) Localiza jan-16 DEB 476 R$ R$ Y %DI % % Fitch AAA(bra) Banco Mercedes-Benz do Brasil dez-15 LF R$ R$ Y %DI % % Fitch AAA(bra) Paraná Banco dez-15 LF R$ R$ Y %DI % % Fitch AA-(bra) CPC jan-16 DEB 476 R$ 1,250.0 R$ 1, Y DI+ 3.50% 3.50% Fitch AA(bra) Bayer mar-16 CRA R$ R$ Y DI+ 0.29% 0.29% S&P braaa Cemig Distribuição mar-16 DEB 476 R$ 1, Y DI+ 4.05% 4.05% Fitch AA-(bra) R$ 1,615.0 Cemig Distribuição mar-16 DEB 476 R$ 0.0 5Y NTNB % Fitch AA-(bra) Suzano mar-16 CRA R$ R$ Y %DI 98.00% 99.50% S&P braa (sf) BRF mar-16 CRA R$ 1,000.0 R$ 1, Y %DI 96.50% 96.50% S&P braaa (sf) Duratex mar-16 CRA R$ R$ Y %DI 98.00% % - CCAB Agro mar-16 CRA R$ 85.0 R$ Y DI+ 2.00% 2.50% S&P braa- (sf) EDP Energias do Brasil abr-16 DEB 476 R$ R$ Y IPCA+ 8.35% 8.35% Moody's A2.br Ipiranga mai-16 DEB 476 R$ R$ Y %DI % % - Fibria jun-16 CRA R$ Y %DI 97.00% % Fitch AAA(bra) R$ 1,000.0 Fibria jun-16 CRA R$ Y IPCA+ 5.98% 6.48% Fitch AAA(bra) Valid jul-16 DEB 476 R$ R$ Y %DI % % Moody's Aa3.br Iguatemi jul-16 CRI R$ R$ Y DI % 0.60% Fitch AA+(bra) Copel G&T jul-16 DEB 476 R$ 1,000.0 R$ 1, Y %DI % % Fitch AA+(bra) Pipeline Burger King jul-16 CRA R$ Y DI+ 1.50% - CTEEP jul-16 DEB 476 R$ Y NTNB % Fitch AA+(bra) São Martinho jul-16 CRA R$ Y %DI % S&P braa+ Tractebel Energia jul-16 DEB 476 7Y NTNB % Fitch AAA(bra) R$ Tractebel Energia jul-16 DEB Y NTNB % Fitch AAA(bra) Guararapes Confecções jul-16 CRI R$ Y %DI % Fitch AA-sf(bra) Duke Energy jul-16 DEB 476 R$ Y DI+ 2.00% Moody's Aa1.br Source: BTG Pactual Maturity Benchmark Final Spread Original spread RATING Table 7: Latest moves by the three main rating agencies Issuer Agency Agency's action Reason Type Current Prior Outlook Samarco Fitch downgrade of rating issuer global / national scale C / C(bra) CCC/CCC(bra) - Samarco Moody's downgrade of rating issuer global scale C Caa2 - Light Moody's downgrade of rating issuer global / national scale B1/Baa3.br Ba3/A3.br Negative Light Serviços de Eletricidade Moody's downgrade of rating issuer global / national scale B1/Baa3.br Ba3/A3.br Negative Light Energia Moody's downgrade of rating issuer global / national scale B1/Baa2.br Ba3/A3.br Negative Duke Paranapanema Moody's assignment of rating debentures issuance national scale Aa1.br - Negative Invepar Moody's downgrade of rating issuer global / national scale B2/Ba2.br B1/Baa2.br Negative Banrisul Moody's outlook change issuer global / national scale On review down - - Source: S&P, Moody s and Fitch

8 22 July 2016 page 8 Chart 3: Term structure of local interest rate Chart 4: DPGE change (adjusted for money-market rate) Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr jul jun mai-16 Variação do estoque em R$ milhões jul-15 ago-15 set-15 out-15 nov-15 dez-15 jan-16 fev-16 mar-16 abr-16 mai-16 jun-16 jul-16 Source: CETIP. 21/Jul/2016 Chart 5: Letras Financeiras change (adjusted for money-market rate) 15 Variação do estoque mensal (R$ bi) Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Source: CETIP. 21/Jul/2016

9 22 July 2016 page 9 Brazilian Corporate Bonds (Offshore) Chart 6: Investment Grade Corporates GGBRBZ 5.89 ' GGBRBZ 4.75 ' GGBRBZ 5.75 '21 BRASKM 6.45 '24 MID YTW GGBRBZ 7 '20 VALEBZ 5.88 '21 VALEBZ 4.38 '22 KLAB 5.25 ' BRASKM 5.38 ' VALEBZ 4.63 '20 BRASKM 5.75 '21 EMBRBZ 5.7 '23 CIELBZ 3.75 '22 FIBRBZ 5.25 ' GLOPAR 4.88 '22 BRFSBZ 5.88 '22 EMBRBZ 5.15 '22 BRFSBZ 4.75 ' BRFSBZ 3.95 '23 GGBRBZ 7.25 ' Chart 7: High Yield Corporates 8.25 PETBRA 8.75 ' BEEFBZ 8.75 'Perp PETBRA 6.25 ' MRFGBZ 8 '23 PETBRA 4.38 ' PETBRA 8.38 '21 TUPY 6.63 '24 MID YTW MRFGBZ 9.5 '20 MRFGBZ 8.38 '18 JBSSBZ 7.25 '21 BEEFBZ 7.75 '23 MRFGBZ 6.88 '19 PETBRA 4.88 '20 JBSSBZ 7.75 '20 SBSPBZ 6.25 '20 PETBRA 5.38 '21 JBSSBZ 7.25 '24 ELEBRA 5.75 '21 CSANBZ 5 '23 JBSSBZ 6.25 '23 JBSSBZ 5.88 '24 VOTORA 4.75 '24 JBSSBZ 5.75 ' KUOBMM 6.25 '22 VOTORA 6.75 ' PETBRA 3 ' SUZANO 5.88 '

10 22 July 2016 page 10 Chart 8: Banks BCOBMG 9.95 '19 BCOBMG 8.88 ' BCOPAN 8.5 '20 BANBRA 8.5 'Perp BTGPBZ 5.75 ' BCOBMG 9.63 '17 BCOBMG 8 '18 BICBBZ 8.5 '20 BTGPBZ 4 '20 ABCBBZ 7.88 '20 MID YTW BANVOR 7.38 ' NORBRA 4.38 '19 CAIXBR 4.25 '19 CAIXBR 4.5 '18 BNDES 6.37 '18 CAIXBR 2.38 '17 ITAU 2.85 '18 BANBRA 5.38 '21 ITAU 6.2 '20 BNDES 5.5 '20 BNDES 4 '19 BRADES 6.75 '19 BRADES 5.9 '21 BANBRA 3.88 '22 ITAU 5.5 '22 BSANTM 4.13 '22 BNDES 5.75 '23 ITAU 5.13 '23 CAIXBR 3.5 '22 BNDES 3.38 ' CORBAN 3.88 ' SANBBZ 4.63 '17 CORBAN 3.13 '18 BRADES 4.5 '

11 22 July 2016 page 11 Table 8: Latest issuances of Brazilian Corporate Bonds Issuer Type Country Size (mn) Currency Ann.Date Coupon Yield Tenor Maturity Rating JBS Corp Brasil 750 USD 11-Jun % 5.875% 10Y 15-Jul-24 BB / BB- / Ba3 Cia Brasileira de Aluminio (VID) Corp Brasil 400 USD 11-Jun % 4.890% 10Y 17-Jun-24 BBB / Baa3 Odebrecht Finance Corp Brasil 500 USD 19-Jun % 5.250% 15Y 27-Jun-29 Baa3 / BBB / BBB OAS Corp Brasil 400 USD 25-Jun % 8.000% 7Y 02-Jul-21 B1 / BB- / B+ Klabin Corp Brasil 500 USD 9-Jul % 5.250% 10Y 16-Jul-24 BBB- Tupy Corp Brasil 350 USD 10-Jul % 6.625% 10Y 17-Jul-24 BB- / BB Intercement Corp Brasil 750 USD 10-Jul % 5.875% 10Y 17-Jul-24 BB / BB Caixa Econômica Federal Bank Brasil 500 USD 16-Jul % 7.250% 10Y 23-Jul-24 Ba3 / BB+ Minerva (re-tap) Corp Brasil 200 USD 13-Aug % 6.879% 10Y 31-Jan-23 BB- BTG Pactual Bank Brasil 1300 USD 11-Sep % 8.750% Perp - Ba3 / B+ GOL Corp Brasil 325 USD 18-Sep % 9.120% 8Y 24-Jan-22 B- Cimentos Tupi (re-tap) Corp Brasil 25 USD 6-Apr % 9.750% 7Y 11-May-18 B / B / B Rio Oil Finance Trust Corp Brasil 1100 USD 14-Nov % 6.750% 12.5Y 06-Jan-27 BBB- Votorantim Cimentos Corp Brasil 500 EUR 7-May % 3.737% 7.2Y 13-Jul-22 BBB / BBB / Baa3 Itau Unibanco Holding Bank Brasil 1050 USD 18-May % 2.860% 3Y 26-May-18 BBB- / BBB+ / Baa3 JBS USA Corp Brasil 900 USD 20-May % 5.750% 10Y 15-Jun-25 Ba2 / BB+ Petrobras Corp Brasil 2500 USD 1-Jun % 8.450% 100Y 05-Jun-15 BBB- / BBB- / Ba2 BRF Corp Brasil 500 EUR 29-May % 2.820% 7Y 03-Jun-22 BBB / BBB- / Baa3 Embraer Corp Brasil 1000 USD 8-Jun % 5.091% 10Y 15-Jun-25 Baa3 / BBB Petrobras Corp Brasil 5000 USD 17-May % 8.625% 5Y 23-May-21 BB / B3 Petrobras Corp Brasil 1750 USD 17-May % 9.000% 10Y 23-May-26 BB / B3 Marfrig Corp Brasil 450 USD 25-May % 8.250% 7Y 08-Jun-23 B+ / B2 / B+ Vale Corp Brasil 1250 USD 7-Jun % 5.875% 5Y 10-Jun-21 BBB / Ba3 / BBB- Eldorado Corp Brasil 350 USD 9-Jun % 8.875% 5Y 16-Jun-21 B+ / B+ Cosan Corp Brasil 500 USD 9-Jun % 7.250% 10.5Y 20-Jan-27 BB+ / Ba3 / BB Petrobras (re-tap) Corp Brasil 1750 USD 17-May % 7.875% 5Y 23-May-21 BB / B3 / B+ Petrobras (re-tap) Corp Brasil 1250 USD 17-May % 8.750% 10Y 23-May-26 BB / B3 / B+ Source: BTG Pactual / Bloomberg Chart 9: Treasury 2Y and Libor 1Y Spread 2.0 Chart 10: US Treasury curve mai jul set nov jan mar mai jul set nov jan mar mai jul set nov jan mar mai jul set nov jan mar mai jul set nov jan mar mai jul set nov jan mar mai jul set nov jan mar mai M 2Y 3Y 5Y 10Y 15Y 20Y Treasury 2Y Libor 1Y 21-jul jun mai-16 Chart 11: Investment Grade Bonds - Top and worst price performances (WTD) VALEBZ '39 VALEBZ '42 VALEBZ '36 VALEBZ '34 BRASKM 'oo BRASKM '18 RAIZBZ '17 GGBRBZ '44 GGBRBZ '21 GGBRBZ '20 BRFSBZ '24 VALEBZ '21 BRASKM '20 EMBRBZ '23-4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% Chart 12: High Yield Bonds - Top and worst price performances (WTD) QGOGCO '19 ODBR '42 SAMMIN '22 SAMMIN '23 SAMMIN '24 ODBR 'oo ECELUP '21 GOLLBZ 'oo ODBR '25 BCOPAN '20 ANDRGI '18 GSHPBR 'oo MAGGBZ 'oo TAM ' % -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

12 22 July 2016 page 12 Disclaimers This report has been prepared by Banco BTG Pactual S.A. The figures contained in performance charts refer to the past; past performance is not a reliable indicator of future results. Pesquisa de Crédito do BTG Pactual S.A.: Definição de recomendações O BTG Pactual S.A. adota modelo de recomendação que busca classificar potenciais oportunidades de investimento nos mercados de renda fixa privada e respectivos setores. Perspectiva para Fundamentos de Crédito da Companhia Horizonte de Tempo Terminologia do BTG Pactual S.A. Expectativa 6 meses Positiva melhore Estável Negativa se mantenha estável piore Definição É esperado que os fundamentos de crédito da companhia <expectativa> em um horizonte de tempo de seis meses Debênture 3 meses COMPRAR Qualquer tipo de recomendação MANTER VENDER N/A Em Revisão N/A performance superior à do mercado performance em linha com à do mercado performance inferior à do mercado É esperado que a companhia/debênture apresente <expectativa> sobre outras companhias/debêntures em um dado grupo de comparação denominados em moeda local em um horizonte de tempo de três meses A recomendação encontra-se em revisão e uma nova recomendação pode ser publicada nos próximos 18 dias Analyst Certification Each research analyst primarily responsible for the content of this investment research report, in whole or in part, certifies that: (i) all of the views expressed accurately reflect his or her personal views about those securities or issuers, and such recommendations were elaborated independently, including in relation to Banco BTG Pactual S.A. and/or its affiliates, as the case may be; (ii) no part of his or her compensation was, is, or will be, directly or indirectly, related to any specific recommendations or views contained herein or linked to the price of any of the securities discussed herein. Research analysts contributing to this report who are employed by a non-us Broker dealer are not registered/qualified as research analysts with FINRA and therefore are not subject to the restrictions contained in the FINRA rules on communications with a subject company, public appearances, and trading securities held by a research analyst account. Part of the analyst compensation comes from the profits of Banco BTG Pactual S.A. as a whole and/or its affiliates and, consequently, revenues arisen from transactions held by Banco BTG Pactual S.A. and/or its affiliates. Where applicable, the analyst responsible for this report and certified pursuant to Brazilian regulations will be identified in bold on the first page of this report and will be the first name on the signature list. Disclosures das Companhias Company Name COPEL G&A Duke Energy Pão de Açúcar SABESP Sto Antonio Taesa 1, 2, 4, 6, 9, 18, 20 1, 2, 4, 6, 18, 19, 20 1, 2, 4, 6, 18, 19, 20 1, 2, 4, 6, 18, 19, 20 1, 2, 4, 6, 18, 19, 20 1, 2, 4, 6, 18, 19, Within the past 12 months, Banco BTG Pactual S.A., its affiliates or subsidiaries has received compensation for investment banking services from this company/entity. 2. Banco BTG Pactual S.A, its affiliates or subsidiaries expect to receive or intend to seek compensation for investment banking services and/or products and services other than investment services from this company/entity within the next three months. 4. This company/entity is, or within the past 12 months has been, a client of Banco BTG Pactual S.A., and investment banking services are being, or have been, provided. 6. Banco BTG Pactual S.A. and/or its affiliates receive compensation for any services rendered or presents any commercial relationships with this company, entity or person, entities or funds which represents the same interest of this company/entity. 9. Banco BTG Pactual S.A. has acted as manager/co-manager in the underwriting or placement of securities of this company/entity or one of its affiliates or subsidiaries within the past 12 months. 18. As of the end of the month immediately preceding the date of publication of this report, neither Banco BTG Pactual S.A. nor its affiliates or subsidiaries beneficially own 1% or more of any class of common equity securities 19. Neither Banco BTG Pactual S.A. nor its affiliates or subsidiaries have managed or co-managed a public offering of securities for the company within the past 12 months. 20. Neither Banco BTG Pactual S.A. nor its affiliates or subsidiaries engaged in market making activities in the subject company's securities at the time this research report was published.

13 22 July 2016 page 13 Disclaimer Global This report has been prepared by Banco BTG Pactual S.A. ( BTG Pactual S.A. ), a Brazilian regulated bank. BTG Pactual S.A. is the responsible for the distribution of this report in Brazil. BTG Pactual US Capital LLC ( BTG Pactual US ), a broker-dealer registered with the U.S. Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation is distributing this report in the United States. BTG Pactual US is an affiliate of BTG Pactual S.A. BTG Pactual US assumes responsibility for this research for purposes of U.S. law. Any U.S. person receiving this report and wishing to effect any transaction in a security discussed in this report should do so with BTG Pactual US at , 601 Lexington Ave. 57th Floor, New York, NY This report is being distributed in the United Kingdom and elsewhere in the European Economic Area ( EEA ) by BTG Pactual Europe LLP ( BTG Pactual UK ), which is authorized and regulated by the Financial Conduct Authority of the United Kingdom. This report may also be distributed in the United Kingdom in the United Kingdom and elsewhere in the EEA by BTG Pactual S.A. and/or BTG Pactual US. BTG Pactual UK has not: (i) produced this report, (ii) substantially altered its contents, (iii) changed the direction of the recommendation, or (iv) disseminated this report prior to its issue by BTG Pactual US. BTG Pactual UK does not distribute summaries of research produced by BTG Pactual US. BTG Pactual Chile S.A. Corredores de Bolsa ( BTG Pactual Chile ), formerly known as Celfin Capital S.A. Corredores de Bolsa, is a Chilean broker dealer registered with Superintendencia Valores Y Seguros (SVS) in Chile and responsible for the distribution of this report in Chile and BTG Pactual Perú S.A. Sociedad Agente de Bolsa ( BTG Pactual Peru ), formerly known as Celfin Capital S.A. Sociedad Agente e Bolsa, registered with Superintendencia de Mercado de Valores (SMV) de Peru is responsible for the distribution of this report in Peru. BTG Pactual Chile and BTG Pactual Peru acquisition by BTG Pactual S.A. was approved by the Brazilian Central Bank on November 14th, BTG Pactual S.A. Comisionista de Bolsa ( BTG Pactual Colombia ) formerly known as Bolsa y Renta S.A. Comisionista de Bolsa, is a Colombian broker dealer register with the Superintendencia Financeira de Colombia and is responsible for the distribution of this report in Colombia. 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