Credit Market Update. Fixed Income Research. Highlights of the week. BTG Pactual Global Research. Brazil Strategy FixedIncome 06 May 2016

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1 Fixed Income Research BTG Pactual Global Research Credit Market Update Brazil Strategy FixedIncome 06 May 2016 Highlights of the week Local corporate debt market Companhia do Metrô da Bahia: the company approved the issuance of R$ 200 million in debentures (CVM#476) via a single series yielding DI+3.95% and maturing in two years. The issuance will be guaranteed by CCR, which has an AA(bra) rating with Fitch, an A2.br with Moody s and a braa- rating with S&P. Concessionária do Rodoanel Oeste: the company issued R$ 750 million in debentures (CVM#476) via a single series yielding DI+3.80% and featuring a 3-year bullet maturity. The issuance is guaranteed by CCR, which has an AA(bra) rating with Fitch, an A2.br with Moody s and a braa- with S&P. Coelba (Companhia de Eletricidade do Estado da Bahia): the company issued R$ 250 million in debentures (CVM#476) via a single series yielding % of the DI rate and featuring a 3-year bullet maturity. Coelba has a braa- rating with S&P. 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 April 28-May 04 totaled R$459.7mn (vs. R$360.00mn in the previous week), with 146 assets traded. The main weekly highlights were RDVT11 Concessionária Rodovias do Tietê (R$25.19mn traded at IPCA+9.71%, with curve of IPCA+8.00%), CTEL11 Copel Telecomunicações (R$15.48mn traded at IPCA+6.57%, with curve of IPCA+7.96%) and ECOV22 Ecovias (R$14.62mn traded at IPCA+5.79%, with curve of IPCA+4.28%). YTD trading volume in the secondary debentures market now stands at R$11.22bn (daily average of R$135.2mn). [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 06 May 2016 page 2 [Heading 1] Table 1: Trades in Brazilian secondary debentures market* Source: ANBIMA, Rating Agency. * considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. braa- 28-Apr-16 BNDESPar BNDP IPCA AA(bra) 28-Apr-16 BR Malls BRML DI AA(bra) 28-Apr-16 BR Malls BRML IPCA bra 28-Apr-16 BR Properties BRPR IPCA braa- 28-Apr-16 CCR CCRD ND %DI ND AAA(bra) 28-Apr-16 Cielo CIEL %DI bra 28-Apr-16 Cemig Distribuição CMDT DI bra 28-Apr-16 Cemig Geração e Transmissão CMTR13 1, DI bra 28-Apr-16 Cemig Geração e Transmissão CMTR23 4, IPCA AA(bra) 28-Apr-16 CPFL Geração de Energia CPGE DI A2.br 28-Apr-16 Copasa CSMG ND %DI ND braaa 28-Apr-16 Vale CVRDA6 4,000 2 ND ND ND ND ND braa- 28-Apr-16 Ecorodovias ECCR IPCA A2.br 28-Apr-16 Ecorodovias Infraestrutura e Logística ECOR DI braa- 28-Apr-16 Elektro EKTR DI A2.br 28-Apr-16 EDP - Energias Do Brasil ENBR ND DI+ ND 1.74 AA(bra) 28-Apr-16 Cemar ENMA DI braa- 28-Apr-16 Duke Energy Intl Geração GEPA DI braa+ 28-Apr-16 Iguatemi Shopping Centers IGTA DI braa+ 28-Apr-16 Iguatemi Shopping Centers IGTA DI bra+ 28-Apr-16 JSL JSML18 8, %DI AA-(bra) 28-Apr-16 Lojas Americanas LAME %DI AA-(bra) 28-Apr-16 Lojas Americanas LAME %DI braa+ 28-Apr-16 Localiza LORT ND %DI ND braa+ 28-Apr-16 Lojas Renner LRNE DI braa- 28-Apr-16 MRS Logística MRSS ND DI+ ND Apr-16 Maestro Locadora de Veículo MSTL DI A2.br 28-Apr-16 SANEPAR SAPR %DI bra+ 28-Apr-16 Sabesp SBSPA DI bra+ 28-Apr-16 Sabesp SBSPA ND DI+ ND 0.8 braa- 28-Apr-16 TAESA TAEE13 2, DI braa- 28-Apr-16 TAESA TAEE IPCA Aa1.br 28-Apr-16 Telefonica Brasil S/A TFBR DI Aa2.br 28-Apr-16 ViaOeste VOES %DI Apr-16 You Inc YOUC ND DI+ ND 6 braa- 29-Apr-16 BNDESPar BNDP IPCA braa- 29-Apr-16 BNDESPar BNDS IPCA bra+ 29-Apr-16 Concessionária Auto Raposo Tavares CART IPCA Baa1.br 29-Apr-16 Conc. Rota das Bandeiras CBAN ND IPCA+ ND 9.57 braa- 29-Apr-16 CCR CCRD ND %DI ND braa- 29-Apr-16 Coelce CEAR IPCA bra 29-Apr-16 Cemig Geração e Transmissão CMTR23 3, IPCA Apr-16 Casadoce CSDC ND %DI ND 150 braa- 29-Apr-16 Ecorodovias ECCR IPCA Baa1.br 29-Apr-16 Ecopistas ECPT11 1, IPCA Baa1.br 29-Apr-16 Ecopistas ECPT21 1, IPCA Baa1.br 29-Apr-16 Ecopistas ECPT31 1, IPCA Baa1.br 29-Apr-16 Ecopistas ECPT41 1, IPCA braa- 29-Apr-16 Elektro EKTR DI bra+ 29-Apr-16 Eletropaulo ELSPA ND DI+ ND 1.24 bra- 29-Apr-16 Iochpe-Maxion IOCH ND %DI ND 99 bra+ 29-Apr-16 JSL JSML IPCA bra 29-Apr-16 Minerva MNRV14 1, ND DI+ ND 1.75 braa- 29-Apr-16 MRS Logística MRSL16 2, ND DI+ ND Apr-16 MTEL Tecnologia MTEL ND ND %DI ND 130 braa+ 29-Apr-16 Multiplan MULP ND DI+ ND 0.87 braaa 29-Apr-16 Raízen Energia S.A. RESA21 2, DI braa- 29-Apr-16 TAESA TAES DI A+(bra) 29-Apr-16 Triunfo TPIS IPCA braa- 29-Apr-16 Triângulo do Sol TSAE ND DI+ ND 2.25 brbbb- 02- AES Sul AESL ND DI+ ND 4.75 braa- 02- Ampla AMPL IPCA rate

3 06 May 2016 page 3 Table 2: Trades in Brazilian secondary debentures market* Source: ANBIMA, Rating Agency. * considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. braa- 02- AutoBan ANHB %DI braa- 02- BNDESPar BNDP16 2, Prefixado braa- 02- BNDESPar BNDP IPCA bra 02- BR Properties BRPR IPCA Baa1.br 02- Conc. Rota das Bandeiras CBAN ND IPCA+ ND 9.57 braa- 02- CCR CCRD18 2, ND %DI ND bra 02- Cemig Geração e Transmissão CMTR DI Aa2.br 02- Intervias S.A. CRIP DI Casadoce CSDC %DI braa- 02- Ecorodovias ECCR12 1, DI braa- 02- Ecorodovias ECCR IPCA braa- 02- Energisa ENGI ND ND IPCA+ ND 9.23 braa- 02- Comgas GASP DI AA(bra) 02- Libra Terminal Rio LBRA ND DI+ ND 1.3 braaa 02- Natura Cosméticos NATU %DI braaa 02- Natura Cosméticos NATU ND %DI ND 107 braa- 02- Arteris OHLB ND DI+ ND 2 braa- 02- Rodovias das Colinas RDCO ND DI+ ND 1.5 braa+ 02- Sabesp SBESA DI braa+ 02- Sabesp SBESB IPCA braa+ 02- Sabesp SBESC IPCA bra+ 02- Sabesp SBSPB IPCA braa- 02- TAESA TAEE23 2, IPCA Aa2.br 02- AES Tietê TIET14 2, DI A+(bra) 02- Triunfo TPIS ND DI+ ND 2.2 braa- 02- Unidas UNDA ND IPCA+ ND 8.39 Aa2.br 02- ViaOeste VOES %DI braa- 03- Ampla AMPL IPCA braa- 03- BNDESPar BNDP IPCA braa- 03- BNDESPar BNDS35 1, IPCA braa- 03- CCR CCRD ND %DI ND CEB Distribuição CEBD ND DI+ ND 6.8 bra 03- Cemig Geração e Transmissão CMTR DI bra 03- Cemig Geração e Transmissão CMTR IPCA braa 03- Cia Paulista de Securitização CPSC ND DI+ ND 2.5 Aa2.br 03- Intervias S.A. CRIP DI braaa 03- Vale CVRDA ND ND ND ND ND braaa 03- Vale CVRDB6 10,000 1 ND ND IGP-M ND ND bra+ 03- Eletropaulo ELSPA DI braa- 03- Comgas GASP13 1, DI braa+ 03- Hypermarcas HYPE IPCA bra+ 03- JSL JSML %DI Aa2.br 03- Lajeado Energia LJDE DI braa+ 03- Localiza LORT %DI braa- 03- MRV Engenharia MRVE DI braa- 03- Rodovias das Colinas RDCO ND DI+ ND REC Betim RECB ND %DI ND 135 braa+ 03- Sabesp SBESB IPCA braa- 03- TAESA TAEE IPCA A+(bra) 03- Triunfo TPIS IPCA braa- 03- Unidas UNDA ND IPCA+ ND 8.39 brbbb- 04- AES Sul AESS ND DI+ ND 1.25 braa- 04- BNDESPar BNDP IPCA braa- 04- CCR CCRD ND %DI ND bra 04- Cemig Geração e Transmissão CMTR IPCA A2.br 04- Ecorodovias Infraestrutura e Logística ECOR DI braa- 04- Comgas GASP13 1, DI braa- 04- Rede Dor São Luiz S.A. HMSL DI braa+ 04- Hypermarcas HYPE IPCA AA-(bra) 04- Lojas Americanas LAME %DI braa+ 04- Localiza LORT ND %DI ND MTEL Tecnologia MTEL ND 0.03 ND %DI ND 130 rate

4 06 May 2016 page 4 Table 3: Trades in Brazilian secondary debentures market Source: ANBIMA, Rating Agency. * considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. braa- 04- Rodovias das Colinas RDCO ND DI+ ND 1.50 braaa 04- Raízen Energia S.A. RESA21 2, DI braa+ 04- Sabesp SBESA DI braa- 04- Triângulo do Sol TSAE IPCA rate Table 4: Trades in Brazilian secondary debentures market Infra Debentures* Source: ANBIMA, Rating Agency. * considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. AA-(bra) 28-Apr-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 28-Apr-16 Concessionária do Aeroporto Intl Guarulhos AGRU12 1, IPCA AA-(bra) 28-Apr-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 28-Apr-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 28-Apr-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA braa- 28-Apr-16 AutoBan ANHB IPCA braa- 28-Apr-16 AutoBan ANHB16 3, IPCA braa- 28-Apr-16 AutoBan ANHB ND IPCA AA+(bra) 28-Apr-16 Alupar Investimento APAR IPCA bra+ 28-Apr-16 Concessionária Auto Raposo Tavares CART IPCA Apr-16 Chapada do Piauí I CHPA ND IPCA+ ND Apr-16 Copel Telecomunicações CTEL IPCA braa- 28-Apr-16 Ecovias ECOV22 1, IPCA A2.br 28-Apr-16 EDP - Energias Do Brasil ENBR24 1, ND IPCA+ ND A2.br 28-Apr-16 EDP - Energias Do Brasil ENBR ND IPCA+ ND braa- 28-Apr-16 Comgas GASP IPCA Apr-16 Interligação Eletrica do Madeira S/A IEMD ND IPCA+ ND 5.5 braa- 28-Apr-16 MRS Logística MRSL ND IPCA+ ND A+(bra) 28-Apr-16 Odebrecht Transport S.A. ODTR IPCA braa- 28-Apr-16 Rodonorte RDNT IPCA Baa1.br 28-Apr-16 Concessionária Rodovias do Tietê RDVT IPCA braaa 28-Apr-16 Raízen Energia S.A. RESA IPCA Aa2.br 28-Apr-16 Rodovias Integradas do Oeste RVIO IPCA Apr-16 Salus Infraestrutura Portuária SAIP ND ND IPCA+ ND A(bra) 28-Apr-16 Saneatins SNTI ND IPCA+ ND A(bra) 28-Apr-16 Saneatins SNTI23 1, ND IPCA+ ND bra 28-Apr-16 Santo Antônio Energia STEN ND IPCA+ ND Aa2.br 28-Apr-16 AES Tietê TIET IPCA braaa 28-Apr-16 Vale VALE IPCA braaa 28-Apr-16 Vale VALE IPCA braaa 28-Apr-16 Vale VALE29 2, IPCA braaa 28-Apr-16 Vale VALE IPCA braaa 28-Apr-16 Vale VALE IPCA AA(bra) 28-Apr-16 VLI Multimodal VLIM IPCA AA(bra) 28-Apr-16 Ventos de São Tito Holdings VNTT ND IPCA+ ND Aa2.br 28-Apr-16 ViaOeste VOES IPCA AA-(bra) 29-Apr-16 Concessionária do Aeroporto Intl Guarulhos AGRU11 2, IPCA AA-(bra) 29-Apr-16 Concessionária do Aeroporto Intl Guarulhos AGRU12 1, IPCA AA-(bra) 29-Apr-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 29-Apr-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 29-Apr-16 Concessionária do Aeroporto Intl Guarulhos AGRU IPCA braa- 29-Apr-16 AutoBan ANHB IPCA braa- 29-Apr-16 AutoBan ANHB16 1, IPCA AA+(bra) 29-Apr-16 Alupar Investimento APAR IPCA Apr-16 Chapada do Piauí I CHPA ND IPCA+ ND Apr-16 Copel Telecomunicações CTEL IPCA braa- 29-Apr-16 Ecovias ECOV22 1, IPCA A2.br 29-Apr-16 EDP - Energias Do Brasil ENBR ND ND IPCA+ ND A2.br 29-Apr-16 EDP - Energias Do Brasil ENBR ND ND IPCA+ ND AA+(bra) 29-Apr-16 Ferreira Gomes Energia FGEN ND ND IPCA+ ND braa- 29-Apr-16 Comgas GASP14 3, IPCA braa- 29-Apr-16 Comgas GASP IPCA rate

5 06 May 2016 page 5 Table 5: Trades in Brazilian secondary debentures market Infra Debentures* Source: ANBIMA, Rating Agency. * considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. braa- 29-Apr-16 Comgas GASP IPCA braa- 29-Apr-16 MRS Logística MRSL27 6, ND IPCA+ ND bra+ 29-Apr-16 NC Energia NCEN ND IPCA+ ND A+(bra) 29-Apr-16 Odebrecht Transport S.A. ODTR IPCA Baa1.br 29-Apr-16 Concessionária Rodovias do Tietê RDVT11 1, IPCA Apr-16 Salus Infraestrutura Portuária SAIP11 1, ND ND IPCA+ ND A(bra) 29-Apr-16 Saneatins SNTI ND IPCA+ ND A(bra) 29-Apr-16 Saneatins SNTI23 1, ND IPCA+ ND AAA(bra) 29-Apr-16 Tractebel Energia TBLE IPCA Aa2.br 29-Apr-16 AES Tietê TIET34 1, IPCA braaa 29-Apr-16 Vale VALE19 1, IPCA braaa 29-Apr-16 Vale VALE IPCA braaa 29-Apr-16 Vale VALE29 2, IPCA braaa 29-Apr-16 Vale VALE IPCA AA(bra) 29-Apr-16 VLI Multimodal VLIM11 2, IPCA AA(bra) 29-Apr-16 Ventos de São Tito Holdings VNTT ND IPCA+ ND AA-(bra) 02- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 02- Concessionária do Aeroporto Intl Guarulhos AGRU12 2, IPCA AA-(bra) 02- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 02- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 02- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA braa- 02- AutoBan ANHB IPCA braa- 02- AutoBan ANHB16 2, IPCA braa- 02- AutoBan ANHB ND IPCA AA+(bra) 02- Alupar Investimento APAR16 1, IPCA bra+ 02- Concessionária Auto Raposo Tavares CART IPCA Chapada do Piauí I CHPA ND IPCA+ ND Copel Telecomunicações CTEL IPCA braa- 02- Ecovias ECOV IPCA braa- 02- Ecovias ECOV22 1, IPCA A2.br 02- EDP - Energias Do Brasil ENBR24 1,926 8 ND ND IPCA+ ND AA+(bra) 02- Ferreira Gomes Energia FGEN13 2,668 7 ND ND IPCA+ ND braa- 02- Comgas GASP IPCA braa- 02- Comgas GASP IPCA braa- 02- MRS Logística MRSL ND IPCA+ ND braa- 02- MRS Logística MRSL27 2, ND IPCA+ ND bra+ 02- NC Energia NCEN ND IPCA+ ND brb- 02- Norte Brasil Transmissora de Energia NRTB ND IPCA+ ND 7.15 A+(bra) 02- Odebrecht Transport ODTR IPCA Baa1.br 02- Concessionária Rodovias do Tietê RDVT11 2, IPCA AA-(bra) 02- Renova Eólica Part. RNEP ND IPCA+ ND Aa2.br 02- Rodovias Integradas do Oeste RVIO IPCA Santo Antônio Energia SAES ND IPCA+ ND Salus Infraestrutura Portuária SAIP11 1, ND ND IPCA+ ND A(bra) 02- Saneatins SNTI ND IPCA+ ND A(bra) 02- Saneatins SNTI ND IPCA+ ND AAA(bra) 02- Tractebel Energia TBLE IPCA AA+(bra) 02- Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 AA+(bra) 02- Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 AA+(bra) 02- Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 AA+(bra) 02- Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 Aa2.br 02- AES Tietê TIET IPCA braaa 02- Vale VALE18 1, IPCA braaa 02- Vale VALE28 1, IPCA braaa 02- Vale VALE IPCA braaa 02- Vale VALE IPCA AA(bra) 02- VLI Multimodal VLIM IPCA AA(bra) 02- Ventos de São Tito Holdings VNTT ND IPCA+ ND AA-(bra) 03- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 03- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 03- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 03- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA rate

6 06 May 2016 page 6 Table 6: Trades in Brazilian secondary debentures market Infra Debentures* Source: ANBIMA, Rating Agency. * considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. AA-(bra) 03- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA braa- 03- AutoBan ANHB15 1, IPCA braa- 03- AutoBan ANHB IPCA AA+(bra) 03- Alupar Investimento APAR IPCA bra+ 03- Concessionária Auto Raposo Tavares CART12 1, IPCA Chapada do Piauí I CHPA ND IPCA+ ND Copel Telecomunicações CTEL IPCA braa- 03- Ecovias ECOV22 8, IPCA AA+(bra) 03- Ferreira Gomes Energia FGEN ND 0.24 ND IPCA+ ND braa- 03- Comgas GASP IPCA Interligação Eletrica do Madeira S/A IEMD ND IPCA+ ND 5.50 Aa2.br 03- Intervias IVIA IPCA braa- 03- MRS Logística MRSL27 4, ND IPCA+ ND 6.43 A2.br 03- ViaLagos RDLA IPCA Baa1.br 03- Concessionária Rodovias do Tietê RDVT11 15, IPCA Salus Infraestrutura Portuária SAIP ND 1.03 ND IPCA+ ND 6.79 A(bra) 03- Saneatins SNTI ND IPCA+ ND A(bra) 03- Saneatins SNTI ND IPCA+ ND AAA(bra) 03- Tractebel Energia TBLE IPCA Aa2.br 03- AES Tietê TIET IPCA braaa 03- Vale VALE18 1, IPCA braaa 03- Vale VALE IPCA braaa 03- Vale VALE IPCA braaa 03- Vale VALE IPCA braaa 03- Vale VALE IPCA AA(bra) 03- VLI Multimodal VLIM IPCA AA(bra) 03- Ventos de São Tito Holdings VNTT ND IPCA+ ND 9.24 AA-(bra) 04- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 04- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 04- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 04- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA AA-(bra) 04- Concessionária do Aeroporto Intl Guarulhos AGRU IPCA braa- 04- AutoBan ANHB IPCA bra+ 04- Concessionária Auto Raposo Tavares CART IPCA Copel Telecomunicações CTEL IPCA braa- 04- Ecovias ECOV IPCA braa- 04- Ecovias ECOV IPCA A2.br 04- EDP - Energias Do Brasil ENBR ND 0.05 ND IPCA+ ND 8.32 A2.br 04- EDP - Energias Do Brasil ENBR ND 0.20 ND IPCA+ ND 8.26 AA+(bra) 04- Ferreira Gomes Energia FGEN ND 0.10 ND IPCA+ ND 6.47 braa- 04- Comgas GASP IPCA braa- 04- Comgas GASP23 1, IPCA braa- 04- Comgas GASP IPCA braa- 04- MRS Logística MRSL ND IPCA+ ND 5.98 braa- 04- MRS Logística MRSL ND IPCA+ ND 6.43 A+(bra) 04- Odebrecht Transport ODTR IPCA braa- 04- Rodonorte RDNT IPCA Baa1.br 04- Concessionária Rodovias do Tietê RDVT IPCA Salus Infraestrutura Portuária SAIP ND 0.22 ND IPCA+ ND 6.79 A(bra) 04- Saneatins SNTI ND IPCA+ ND A(bra) 04- Saneatins SNTI ND IPCA+ ND bra 04- Santo Antônio Energia STEN IPCA AA+(bra) 04- Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 AA+(bra) 04- Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 AA+(bra) 04- Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 AA+(bra) 04- Termeletrica Pernambuco III TEPE ND IPCA+ ND 9.11 Aa2.br 04- AES Tietê TIET IPCA AA(bra) 04- Ventos de São Tomé Holding TOME12 1, ND IPCA+ ND braaa 04- Vale VALE19 2, IPCA braaa 04- Vale VALE29 1, IPCA braaa 04- Vale VALE IPCA braaa 04- Vale VALE IPCA rate

7 06 May 2016 page 7 Table 7: Trades in Brazilian secondary debentures market Infra Debentures* Source: ANBIMA, Rating Agency. * considers MID Price. ** Leasing debentures are not considered in the secondary market debentures. AA(bra) 04- VLI Multimodal VLIM IPCA AA(bra) 04- Ventos de São Tito Holdings VNTT11 1, ND IPCA+ ND rate Chart 1: Most traded debentures (28/Apr/2016 to 04/May/2016) VALE19 5,3 HMSL15 5,3 SNTI23 5,9 AGRU12 5,9 MSTL11 6,1 VLIM11 6,1 NATU15 6,2 RDCO14 6,4 IGTA14 6,7 AESS12 7,9 JSML18 8,2 LAME29 8,9 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0 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) Table 8: s 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$ IPCA+ 8.35% 8.35% Moody's A2.br Pipeline BR Malls abr-16 DEB 476 R$ Y %DI % Fitch AA(bra) Burger King abr-16 CRA R$ Y DI+ 1.50% - Source: BTG Pactual Maturity Final Spread Original spread RATING

8 06 May 2016 page 8 Table 9: Latest moves by the three main rating agencies Issuer Agency Agency's action Reason Type Current Prior Outlook Brazil Fitch downgrade of rating issuer global scale BB BB+ Negative Odebrecht Engenharia e Construção Fitch downgrade of rating issuer global / national scale B+ / A-(bra) BB / AA-(bra) WatchNeg Renova Energia Fitch downgrade of rating issuer national scale BBB-(bra) A-(bra) WatchNeg Gol Linhas Aéreas Inteligentes Fitch downgrade of rating issuer global / national scale C / C(bra) CCC/CCC(bra) - Gol Linhas Aéreas Inteligentes S&P downgrade of rating issuer global / national scale CC / brcc CCC- / brccc- WatchNeg Camil Alimentos S&P outlook change issuer global / national scale Negative Stable - Odebrecht Engenharia e Construção S&P downgrade of rating issuer global / national scale B+ / brbbb- BB- / bra- WatchNeg Rodovia das Colinas S&P assignment of rating debentures issuance national scale braa- - - AB Concessões S&P assignment of rating issuer national scale braa- - Negative Triângulo do Sol Auto-Estradas S&P downgrade of rating debentures issuance national scale braa- braa - BM&FBovespa S&P downgrade of rating issuer global scale BB BB+ Negative Gol Linhas Aéreas Inteligentes Moody's downgrade of rating issuer global scale Caa3 Caa1 Negative Gol Finance Moody's downgrade of rating senior bonds issuance global scale Caa3 Caa2 - Gol Finance (Perpetual notes) Moody's downgrade of rating senior bonds issuance global scale C Caa2 - Odebrecht Engenharia e Construção Moody's downgrade of rating issuer global / national scale B2 / Ba2.br Ba2 / Aa2.br UnderReview Source: S&P, Moody s and Fitch Chart 3: Term structure of local interest rate Chart 4: DPGE change (adjusted for money-market rate) Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 5-mai abr mar-16 Variação do estoque em R$ milhões mai-15 jun-15 jul-15 ago-15 set-15 out-15 nov-15 dez-15 jan-16 fev-16 mar-16 abr-16 mai-16 Source: CETIP. 05/May/2016 Chart 5: Letras Financeiras change (adjusted for money-market rate) 15 Variação do estoque mensal (R$ bi) Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Source: CETIP. 05/May/2016

9 06 May 2016 page 9 Brazilian Corporate Bonds (Offshore) Chart 6: Investment Grade Corporates GGBRBZ 7.25 ' GGBRBZ 5.89 '24 BRASKM 7.13 ' GGBRBZ 4.75 '23 MID YTW GGBRBZ 7 '20 GGBRBZ 5.75 '21 VALEBZ 4.63 '20 VALEBZ 4.38 '22 BRASKM 6.45 '24 BRASKM 5.38 '22 BRASKM 5.75 ' GLOPAR 4.88 '22 BRFSBZ 5.88 '22 CIELBZ 3.75 '22 FIBRBZ 5.25 '24 KLAB 5.25 '24 BRFSBZ 4.75 '24 EMBRBZ 5.7 '23 BRFSBZ 3.95 ' GGBRBZ 7.25 '17 BVMFBZ 5.5 '20 EMBRBZ 5.15 ' RAIZBZ 7 ' Chart 7: High Yield Corporates BRPRSA 9 'Perp BEEFBZ 8.75 'Perp PETBRA 6.85 '15 PETBRA 6.88 '40 CSANBZ 8.25 'Perp PETBRA 7.25 '44 BRMLBZ 8.5 'Perp MID YTW PETBRA 4.88 '20 MRFGBZ 9.5 '20 PETBRA 3 '19 MRFGBZ 6.88 '19 JBSSBZ 7.75 '20 MRFGBZ 8.38 '18 SBSPBZ 6.25 '20 PETBRA 6.25 '24 PETBRA 5.38 '21 PETBRA 4.38 '23 ELEBRA 5.75 '21 JBSSBZ 7.25 '24 JBSSBZ 6.25 '23 TUPY 6.63 '24 BEEFBZ 7.75 '23 CSANBZ 5 '23 JBSSBZ 5.75 '25 JBSSBZ 5.88 '24 PETBRA 5.63 ' PETBRA 3.25 '17 PETBRA 3.5 '17 SUZANO 5.88 '

10 06 May 2016 page 10 Chart 8: Large Banks BTGPBZ 4.88 '16 BANBRA 5.88 ' BANVOR 7.38 ' BANBRA 5.38 '21 BANBRA 3.88 '22 CAIXBR 3.5 '22 BNDES 5.75 '23 CAIXBR 4.25 '19 MID YTW CAIXBR 2.38 '17 CAIXBR 4.5 '18 BNDES 4 '19 BNDES 5.5 '20 BRADES 5.9 '21 ITAU 6.2 '20 BRADES 5.75 '22 ITAU 5.5 '22 ITAU 5.13 ' BNDES 6.37 '18 BRADES 6.75 ' ITAU 2.85 '18 BSANTM 4.13 ' BNDES 3.38 ' SANBBZ 4.63 '17 BRADES 4.5 ' Chart 9: Small & Mid-size Banks FIBRA 8.5 ' MID YTW BCOPAN 8.5 '20 BONSUC 9.25 ' BCOBMG 9.95 '19 BCOBMG 8.88 '20 BRSRBZ 7.38 ' BCOBMG 9.63 '17 BCOBMG 8 '18 DAYCOV 5.75 '19 ABCBBZ 7.88 '20 BICBBZ 8.5 '

11 06 May 2016 page 11 Table 10: Latest issuances of Brazilian Corporate Bonds Issuer Type Country Size (mn) Currency Ann.Date Coupon Yield Tenor Maturity Rating Braskem (re-tap) Corp Brasil 250 USD 16-Jan % 6.038% 10Y 03-Feb-24 BBB- / BBB- / Baa3 Fibria Corp Brasil 600 USD 07-May % 5.340% 10Y 12-May-24 Ba1 / BB+ / BBB- Caixa Econômica Federal Bank Brasil 1300 USD 06-May % 4.330% 5Y 13-May-19 BBB- / BBB Tonon Bioenergia Corp Brasil 230 USD 09-May % 10.75% 10Y 14-May-24 B BRF Corp Brasil 750 USD 15-May % 4.950% 10Y 22-May-24 Baa3 / BBB- / BBB- GVO Corp Brasil 135 USD 09-Jun % % 6Y 13-Jan-20 B- / B / B2 Marfrig Corp Brasil 850 USD 10-Jun % 6.875% 5Y 24-Jun-19 B / B / B2 Odebrecht O&G Corp Brasil 400 USD 10-Jun % 7.00% Perp - BBB- Rio Oil Finance Trust Corp Brasil 2000 USD 12-Jun % 6.299% 10Y 06-Jul-24 BBB Banco do Brasil Bank Brasil 2500 USD 11-Jun % 9.000% Perp - Ba3 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 Source: BTG Pactual / Bloomberg Chart 10: Treasury 2Y and Libor 1Y Spread 2.0 Chart 11: 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 M 2Y 3Y 5Y 10Y 15Y 20Y Treasury 2Y Libor 1Y 5-mai abr mar-16 Chart 12: Investment Grade Bonds - Top and worst price performances (WTD) Chart 13: High Yield Bonds - Top and worst price performances (WTD) KLAB '24 EMBRBZ '25 BRASKM '41 BRASKM 'oo CIELBZ '22 BRASKM '24 BRASKM '21 MAGGBZ 'oo BTGINV '18 ODEBRE '22 BANBRA '23 BANBRA '22 BMEBMZ '20 USJACU '19 VALEBZ '34 VALEBZ '20 VALEBZ '36 VALEBZ '39 VALEBZ '42 VALEBZ '22 VALEBZ '19-6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% OIBRBZ '22 ODBR 'oo SAMMIN '22 SAMMIN '23 SAMMIN '24 ODBR '29 ODBR ' % -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

12 06 May 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 COELBA CopelTelecom Ecovias MetroBahia Rodoanel Oeste Rodovias do Tietê 1, 2, 4, 6, 18, 19, 20 18, 19, 20, 21, 22 1, 2, 4, 6, 18, 19, 20 1, 2, 4, 6, 18, 19, 20 1, 4, 18, 19, 20, 22 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. 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. 21. Banco BTG Pactual S.A. or its affiliates or subsidiaries have not received compensation for investment banking services from the companies in the past 12 months 22. Banco BTG Pactual S.A. or its affiliates or subsidiaries do not expect to receive or intends to seek compensation for investment banking services from the companies within the next 3 months.

13 06 May 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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