Us$ 539 million in new operations reduce the capital cost of the company, extending the medium term of debt to 11 years.

Braskem successfully concluded some financial operations in the international and domestic market that will provide the company with US$ 539 million in resources. Among the most recent operations there was the launching of a perpetual bond of US$ 150 million. Braskem was the first non financial institution in Brazil to issue such a bond in the international market without expiration. Through these initiatives and with profits of around R$1,0 billion, the company enhances its competitiveness and its strategic and financial flexibility.

"Braskem finishes an important step in the consolidation of its structure of capital and initiates a new phase of growth, focusing on the value creation and on the discipline of capital", states Paul Altit, vice president of Finances and Investors Relations. As a result of this situation, the medium term of the debt was extended to 11 years.

The perpetual bond operation of US$ 150 million, has a rate of 9,75%/year. Braskem issued other bond in the same value but with a 10 years term, paying the rate of 9,375%/year. The incomes originated from the international market will be destined to replace debt in foreign and more expensive currencies and debt of shorter terms.

In this context of reducing the financial expenses, it was concluded on July 30Th the renegotiation of an exportation pre-payment operation of US$ 200 million, with an extended term of 5 years and an interest rate reduced in 3% per year if compared to the previous year.

Another considerable operation involved the issue of R$ 300 million in debentures in the domestic market with remuneration of 104,1% of CDI.

Braskem has strengthened its financial structure to follow the investments anticipated in its growth programs and to observe the necessity of strategic movements in case there are new opportunities for consolidating the petrochemical sector in Brazil. In this direction, the company will be always aligned with its strategy of adding value to its shareholders and being internationally known.

Recently, Braskem has announced the decision of implementing, in partnership with Petroquisa, a unit for polypropylene production in São Paulo with initial capacity of 300 thousand/tons and potential to reach 350 thousand tons. The company has also announced, as a practical result of the agreement signed with Pequiven in February 14th, the beginning of the studies for the implementation of a polypropylene plant in Venezuela with capacity to produce 400 thousand tons/year in the Petrochemical Complex of El Tablazo. These projects are aligned with the strategy of Braskem to hold the leadership in the polypropylene market in Latin America.