Petrobras reported last Friday (Sep 20th) it entered into a Cession Agreement of Credit Rights, allowing the advance of about R$ 8.4 billion of receivables from Eletrobras, recognized in the Debt Assumption Agreements (IADs) referring to the totality of the debts confessed in 2014 by the Eletrobras Group, with original maturity until January 2025.

The agreement was signed with a credit rights investment fund, in a transaction structured by Banco Santander (Brasil) S.A., Banco Itaú BBA S.A. and BB Banco de Investimento S.A.

Transaction closing, with the consequent inflow of the funds, is expected in the coming days, subject to compliance with the usual precedent conditions in this type of transaction.

Funds will be allocated to the company's liability management, which aims at improving the amortization profile and reducing the cost of debt, taking into account the deleveraging target provided for in its 2019-2023 Business and Management Plan.

Additionally, Petrobras informs that today, it entered into amendments to the Debt Assumption Agreements (IADs) of 2014 (object of the Cession Agreement) and of 2018 with Eletrobras, in order to release Eletrobras from the obligation to offer real guarantees in exchange for new covenants.

Information regarding receivables from Eletrobras is presented in note 8.4. of the 2018 financial statements and note 5.4. of the 2Q19 results.