The board of Companhia Energetica de Minas Gerais (CIG), or Cemig, Brazil's third-biggest power utility, authorized the company to issue up to 6.5 billion Brazilian reais ($3.5 billion) in promissory notes to finance acquisitions, the company said in a statement late Thursday.

The notes will mature in 360 days and the company is proposing to pay an interest rate of 6% over the local interbank rate.

Banco Bradesco BBI, BTG Pactual, Banco Itau BBA, HSBC and Banco Votorantim will coordinate the deal.

The company said the proceeds will be used to finance acquisitions.

Earlier this year, Cemig presented a proposal for the acquisition of a 21.35% stockholding interest in Portuguese electric company Energias de Portugal (EDPFY), or EDP.

The three other bidders for the EDP stake are German utility E.ON AG (EOAN.XE), China's Three Gorges Corp., and Brazil's Centrais Eletricas Brasileiras SA (EBR), or Eletrobras.

-By Rogerio Jelmayer, Dow Jones Newswires; +55 11 3544 7071; rogerio.jelmayer@dowjones.com

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