Document:

Exhibit
4.18

ANNOUNCEMENT OF COMMENCEMENT OF PUBLIC DISTRIBUTION OF
NON-CONVERTIBLE UNSECURED DEBENTURES

Unibanco (União de Bancos
Brasileiros S.A.) as Lead Manager hereby announces the commencement of
distribution for public subscription of the 1st Issue, in a Single Series, of
23,042 (twenty three thousand and forty two) debentures not convertible into
shares, without guarantee, being nominal and of the book-entry type, with
nominal unit value of R$ 10,871.6048 (ten thousand, eight hundred and
seventy one point six zero four eight Reais) (“the Offering” or “the Issue”,
and “the Debentures”), issued by

Listed company

CNPJ n° 
06.981.180/0001-16

Avenida
Barbacena, 1200, A1 Wing, 17th Floor,

30190-131 Belo Horizonte, Minas Gerais, Brazil.

ISIN: BRCMGDDBS009

In the amount of:

R$
250,503,517.80

RISK
RATINGS

	
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I               INFORMATION ON THE
ISSUER AND DISTRIBUTION OF THE DEBENTURES

1.             Full name and
principal place of business

CEMIG
Distribuição S.A. (“the Issuer”), a corporation with head office in the
jurisdiction of the city of Belo Horizonte, Minas Gerais State, Brazil, at
Avenida Barbacena 1200, 17th Floor, A1 Wing, registered in the CNPJ/MF under
number 06.981.180/0001-16, with its Articles of Association filed at the
Commercial Board of the State of Minas Gerais, under NIRE No. 31300020568.

2.                      Decision and Deed of the Issue

2.1.          Corporate decisions: The
Offering was approved at the meeting of the Board of Directors of the Issuer
held on January 25, 2006, the minutes of which were ratified by the meeting of
the Board of Directors of the Issuer held on June 29, 2006, and of CEMIG, held
on January 25, 2006.

2.2           Issue Deed: The
terms and conditions of the Debentures are contained in the “Private Deed of
the 1st Public Issue of Debentures Not Convertible Into Shares in a Single
Series Without Guarantee of Cemig Distribuição S.A.”, entered into on August
24, 2006 (“the Issue Deed”). The Issue Deed
was filed at the Commercial Board of the State of Minas Gerais on September 1,
2006, under No. ED000033-7/000.

3.             Characteristics of
the Debentures

3.1.                             Total
amount of the Issue: R$ 250,503,517.80
(two hundred and fifty million, five hundred and three thousand, five hundred
and seventeen Reais and eighty centavos)

3.2         Issue Date:  June 1, 2006.

3.3         Nominal unit value:
R$ 10,871.6048 (ten thousand, eight hundred and seventy one point six zero
four eight Reais), on the Issue Date.

3.4         Series number: The
Issue is effected in a Single Series.

3.5         Number
of Debentures: 23.042 23,042
(twenty three thousand and forty two) Debentures.

3.6         Supplementary Lot
Option: The Issuer has not given the Lead Manager the option to increase
the number of Debentures to be distributed through a Supplementary Lot, as
provided for by Article 24 of CVM Instruction 400.

3.7         Form: The
Debentures are of the simple, non-convertible, nominal, book-entry type,
without issue of deposits or certificates.

3.8         Type: The
Debentures are without guarantee or preference (unsecured).  The Debentures of this Issue have a corporate
guarantee issued by CEMIG in accordance with item 8 below.

3.9         Use of proceeds:
By reason of the Obligatory Exchange, the Issuer will not receive the net
proceeds of this Offering, since the Debentures will be paid up by the
Debentures issued under the “Private Deed of the 3rd Public Issue of
Non-Convertible Simple Debentures Without Guarantee or Preference in a Single
Series of Companhia Energética de Minas Gerais – CEMIG” (“the 3rd CEMIG Issue”).
The proceeds of the 3rd CEMIG Issue were allocated to amortization of the debts
of CEMIG contracted for the carrying out of investments in distribution of
electricity, which became due in 2004, as described in Clause 3.4 of the Issue
Deed.

3.10   Maturity: The period of
maturity of the Debentures of this Offering is 96 (ninety six) months from the
date of issue, with final maturity on the first business day of June 2014.

3.11   Obligatory Exchange: The
present Offering is carried out for the purposes of the Obligatory Exchange of
the Debentures of the 3rd CEMIG Issue for the Debentures, with the consequent
cancellation of the Debentures of the 3rd CEMIG Issue. 

3.12   Programmed amortization:
The Debentures will not be the subject of programmed amortization before the
maturity date.

4.             Remuneration

The debentures shall
carry the right to the following Remuneration (“the Remuneration”):

4.1. Updating

The
Debentures shall have their nominal value updated, from the Issue Date, by the
IGP-M Inflation Index, calculated and published by the Getúlio Vargas
Foundation. This updating will be calculated pro rata temporis, on the basis of
business days, according to the following formula (“Updating of the Debentures”):

where:

	
   

  	
  VNa

  	
  is the updated nominal value calculated to 6
  (six) decimal places, without rounding;

  
	
   

  	
  VNe

  	
  is the nominal amount or remaining nominal
  balance calculated to 6 (six) decimal places, without rounding;

  
	
   

  	
  C

  	
  is the accumulated factor of the monthly
  variations of the indices used, calculated to 8 (eight) decimal places,
  without rounding;

  
	
   

  	
  NI0

  	
  is the index number of the month prior to the
  month of the beginning of updating;

  
	
   

  	
  NI1

  	
  is the amount of the index number of the month of
  start of updating;

  
	
   

  	
  NI2

  	
  is the amount of the index number of the month
  subsequent to the month of commencement of updating;

  
	
   

  	
  NIn

  	
  is the amount of the index number of the month
  prior to the month of updating up to the anniversary date. After the
  anniversary date, the amount of the index number of the month of updating;

  
	
   

  	
  NIn-1

  	
  is the amount of the index number of the month
  prior to month “n”;

  
	
   

  	
  dup

  	
  a whole number– is the number of business days
  between the previous base date and the date of updating; and

  
	
   

  	
  dut

  	
  a whole number – is the number of business days
  between the prior base date and the next base date.

  

 

The
month between two consecutive anniversary dates of the Debentures in question
shall be considered as a month of updating.

The
anniversary date is the date of the first business day of each month.

The
anniversary date is the date of the first business day of each month.

The
index number of the IGP-M shall be used based on an identical number of decimal
places to that used by the body responsible for its calculation.

The
IGP-M shall be applied annually, or in any shorter period permitted by the
legislation from time to time in force, in which case this shall be without the
need for adjustment to the Issue Deed or any other formality.

4.1.2.
If on the date of maturity of any of the Issuer’s pecuniary obligations the
IGP-M is not published, the last prior IGP-M index number published shall be
applied, calculated pro rata temporis, and no financial compensation shall be
due or payable between the Issuer and the holders of the Debentures upon the
subsequent publication of the IGP-M which would be applicable.

4.1.3. In the event of
the abolition, absence of calculation and/or publication of the IGP-M for more
than 10 (ten) consecutive days after the date expected for its calculation
and/or publication, or legal impossibility of application of the IGP-M to the
Debentures, the Fiduciary Agent shall, within 30 (thirty) calendar days from
the event, hold a General Meeting of Debenture Holders (subject to the
provisions of Clause VII of the Issue Deed), for decision, by common accord
with the Issuer, subject to the applicable regulations, on a new parameter for
the remuneration of the Debentures to be proposed by the Issuer. Up to the
decision on this parameter, the last IGP-M officially disclosed, plus
remuneratory interest (as defined below), up to the date of the decision of the
General Meeting of Debenture Holders, shall be used to calculate the updated
value of the Debentures.

4.1.4. If there is no
agreement on the new Remuneration between the Issuer and the Debenture Holders
representing, at least, 2/3 (two-thirds) of the total of the Debentures in
circulation (even if by reason of absence of quorum to decide on the matter),
the Issuer shall redeem the totality of the Debentures in circulation, within
30 (thirty) calendar days from the date of holding of the respective General
Meeting of Debenture Holders, for the amount of their nominal unit value, plus
the remuneration due up to the date of the actual redemption, calculated pro
rata temporis, from the Issue Date of the last prior date of payment of the
remunatory interest, as the case may be, using the last IGP-M officially
published. No premium of any nature shall be added to the redemption referred
to in this item.

4.1.5. The
updating of the Debentures shall be paid by the Issuer jointly with the nominal
unit value of the Debentures, on the respective maturity date.

4.2. Remuneratory
Interest of the Debentures

Interest at 10.5% (ten
point five per cent) per year, calculated per business day, based on a year of
252 (two hundred and fifty two) days shall apply to the nominal unit value plus
the updating of the Debentures, starting from the Issue Date (“the Remuneratory
Interest”). The Remuneratory Interest shall be calculated according to the
following formula:

where:

J                                                   is
the amount of interest payable at the end of each capitalization period (as
defined below), calculated to 6 (six) decimal places, without rounding;

VNa                                 is the nominal unit
value or balance of the nominal value updated, calculated to 6 (six) decimal
places, without rounding;

Fj                                              factor
calculated to 9 decimal places with rounding;

Rate                                equal to 10.5;

N                                                 equal
to 252;

n                                                   a
whole number, being the number of business days between the date of the next
payment of interest and the date of the prior payment of interest;

DT                                         a whole
number, being the number of business days between the date of the next payment
of interest and the date of the prior payment of interest; and

DP                                         a whole
number, being the number of business days between the prior and present dates
of payment of interest.

4.2.1. The Remuneratory Interest shall be paid by the
Issuer annually, the first payment to be made 12 (twelve) months after the
Issue Date, that is to say, on the first business day of June 2007, and the
other payments on the first business day of June of the subsequent years up to
the maturity date, calculated in a regime of capitalization made up, pro rata temporis, of business days.

4.3. -        Limit of the Issue

The Issue complies with the limit specified in Article
60 of the Corporate Law, since the registered capital of the Issuer, on the
Issue Date, was R$ 2,061,997,787.64 (two billion, two hundred and sixty
one million, nine hundred and ninety seven thousand, seven hundred and eighty
seven Reais and sixty four centavos).

4.4.-         Right of preference

There shall be no right of preference for the present
stockholders of the Issuer for subscription of the Debentures.

5.             Conditions
of subscription and paying up

5.1. Subscription price: The price of
subscription of the Debentures shall be their nominal unit value, plus the
remuneration, calculated pro rata temporis
from the Issue Date up to the date of paying up, in accordance with item 4
above.

5.2. Manner of paying up: The Debentures shall
be paid up at sight, by exchange for the Debentures of the 3rd CEMIG issue, under the 

terms of the Obligatory Exchange, and each Debenture
of the 3rd CEMIG Issue shall correspond to 1 (one)
Debenture of this Issue.

5.2.1. Due to the allocation to the Issuer of the
rights and obligations arising from the Debentures of the 3rd CEMIG Issue, as provided for in the Private
Instrument of Assignment of Rights, the Debentures of the 3rd CEMIG Issue received by the Issuer in
paying-up of the Debentures shall be cancelled.

5.3. Place of payment: The payments to which
the Debentures are entitled shall be made using, as the case may be: (i) the
procedures adopted by CBLC, for the Debentures registered in the BOVESPAFIX
System, administered by the Bovespa (São Paulo Stock Exchange) (“the BOVESPAFIX
system”); or (ii) the procedures adopted by CETIP (Custody and Settlement
Chamber) for the Debentures registered in the SND (National Debentures System);
or (iii) for the holders of Debentures of this Issue who are not linked to these
systems, through the Mandated Bank and Clerk of the Issue.

5.4. Immunity of Debenture Holders: If any
Debenture Holder has any type of tax immunity or exemption, such holder must
deliver to the Mandated Bank and Clerk of the Issue within 10 (ten) business
days prior to the date set for receipt of amounts relating to the Debentures,
documentation of proof of this tax immunity or exemption.

5.5. Extension of maturity periods: The periods
relating to the payment of any obligation by any of the parties, including the
Debenture Holders, in relation to the payment of the subscription price, shall
be considered extended up to the first subsequent business day if the maturity
coincides with a day on which there is not a commercial or banking business day
in the cities of São Paulo and/or Belo Horizonte, in the States of São Paulo
and Minas Gerais respectively, without any addition to the amounts to be paid,
with the exception of cases whose payments are to be realized by the CETIP or
by the CBLC, in which event there shall only be postponement when the date of
payment is a national holiday, a Saturday or a Sunday.

5.6. Arrears fine and charges: Without
prejudice to item 11 below, in the event of non-punctuality in the payment of
any amount owed to the holders of the Debentures, the debits in arrears shall
be added to the respective remuneration applicable to the Debentures, and shall
also be subject to an arrears penalty payment of 2% (two per cent) on the
amount owed and arrears interest calculated from the date of non-compliance, up
to the date of actual payment, at the rate of 1% (one per cent) per month, on
the amount owed, independently of notice, advice or Court or extrajudicial
action of any sort, as well as the expenses incurred for collection.

5.7. Expiry of the right to increases: Without
prejudice to the terms of the previous item, non-appearance by the Debenture
Holder to receive the amount corresponding to any of the pecuniary obligations
of the Issuer, on the dates specified in the Issue Deed, or in a notice
published by the Issuer, shall not give it the right to receive Remuneration
Interest and/or arrears charges in the period corresponding to the date on
which the funds were made available for payment and the actual date of
appearance of the Debenture Holder for their receipt, but in any event acquired
rights shall be guaranteed up to the date of the respective maturity.

6.             Distribution placement and procedure

6.1. The Obligatory Exchange of the Debentures shall
commence only after concession by the CVM of registry of the Offering, after
the Final Prospectus of the Offering has been placed at the disposal of the
investors and after publication of this Announcement of Commencement, and the
maximum period for realization of the Obligatory Exchange of the Debentures
shall be 5 (five) business days, from the date of publication of this
Announcement of Commencement.

6.2. Best Efforts: The Debentures shall be the
subject of public distribution, under the best efforts distribution regime,
with intermediation of financial institutions that are part of the Securities
Distribution System, through the SDT (Securities Distribution System),
administered by CETIP, based on policies and guidelines fixed by ANDIMA (the
National Association of Financial Market Institutions), and through the
BOVESPAFIX System, with settlement and custody at the CBLC, and target public
of this present Issue shall be the holders of the Debentures of the 3rd CEMIG
Issue, as specified in item 5.2. above.

6.3. The mechanism of Obligatory Exchange shall be
carried out as provided for by Clause VII of the Issue Deed of the 3rd CEMIG Issue, and the paying-up of the
Debentures shall be at sight, by exchange for the Debentures of the 3rd CEMIG Issue, in the terms of the Obligatory
Exchange, and each Debenture of the 3rd CEMIG Issue shall correspond to 1 (one)
Debenture of this Issue.

6.4. Secondary market: The
Debentures shall be registered for trading in the secondary market: (i) through
the SND, managed by the CETIP, based on the policies and guidelines set by
ANDIMA, the Debentures with settlement and custody at the CETIP; and (ii)
through the BOVESPAFIX system, with settlement and custody at the CBLC.

7.             Renegotiation

The Debentures of this Issue shall not be subject to
programmed renegotiation.

8.             Guarantee

The Debentures of this Issue, and the obligations
assumed by the Issuer under the Issue Deed, are guaranteed by means of a
guarantee given by Companhia Energética de Minas Gerais — CEMIG (“the Guarantee”)
which assumes the condition of and undertakes to be joint debtor and principal
payer of all the obligations arising from the Issue Deed, up to its final
settlement, with express waiver of the benefits provided by Articles 366, 827,
834, 835, 837, 838 and 839 of Law 10406 of January 10, 2002, as amended (“the
Civil Code”), and Articles 77 and 595 of Law 5869 of January 11, 1973, as
amended (“the Code of Civil Procedure”) for the obligations assumed in the
Issue Deed.

9.             Optional
acquisition

The Issuer may, at any time, acquire the Debentures in
circulation in the market, for a price not greater than their nominal value
plus the remuneration, subject to Article 55 of the Corporate Law. The
Debentures that are the subject of such acquisition may be cancelled, remain in
the Issuer’s Treasury, or be placed once again in the market.

10.          Obligatory
early acquisition

The issuer shall be obliged to acquire the Debentures
in circulation, as defined in item 7.2.2 of the Issue Deed, at the option of
those Debenture Holders who do not agree to remain as holders of the Issue
after a change in stockholding control, in the event that there is a change in
the direct or indirect stockholding control, or the stockholding control of
CEMIG. The Debenture Holders shall be advised of the purchase offer by a
specific notice published within 15 (fifteen) calendar days from the actual
date of change of stockholding control, with a period not less than 60 (sixty)
days for the Debenture Holders interested to state their position, counted from
the date of publication of the notice and in the terms of the procedures
described in this advice. The acquisition of the Debentures by the Issuer must
take place on the 30th (thirtieth) calendar day from the last day of
the period for making of statement of position by the Debenture Holders, at the
nominal value, plus the Remuneration, as provided in Clause 4 above. For the
purposes of this item, the following events shall be considered to be “change
in stockholding control”: (i) if the present direct controlling stockholder of
the Issuer, CEMIG, directly or indirectly ceases to hold the equivalent to at
least 50% (fifty per cent) plus one share of the total of the shares
representing the voting capital of the Issuer; (ii) if the present indirect
controlling stockholder of the Issuer, the Government of the State of Minas
Gerais, ceases directly or indirectly to hold the equivalent of at least 50%
(fifty per cent) plus one share of the total of the shares representing the
voting capital of CEMIG; or (iii) if the present controlling stockholder of
CEMIG, the Government of the State of Minas Gerais, directly or indirectly
ceases to hold the equivalent of at least 50% (fifty per cent) plus one of the
total of the shares in the voting capital of the Issuer.

11.          Early
maturity

Subject to items 11.1, 11.1.1 and 11.2 below, the
fiduciary agent shall declare all the obligations relating to the Debenture to
become due for payment immediately and demand immediate repayment by the Issuer
of the debtor balance of the nominal unit value of the Debentures, plus the
Remuneration, due up to the date of actual payment, calculated pro rata temporis, and other charges, independently of
advice, contestation or notification within or outside the Courts, in any of
the following events:

(a) application for
judicial or extra-judicial recovery, or application for bankruptcy made by the
Issuer, by CEMIG, or by any of its subsidiaries or affiliated companies;

(b) extinction,
liquidation, dissolution or declaration of the bankruptcy of the Issuer, of
CEMIG, or of any of its subsidiaries or limited companies;

(c) absence of
fulfillment by the Issuer or by CEMIG of any pecuniary obligation related to
the Debentures;

(d) early maturity of any
debt of the company, or CEMIG, or of any of its subsidiaries or affiliated
companies, in an amount of R$ 50,000,000.00 (fifty million Reais), or
more, due to any non-compliance, contractual or otherwise;

(e) termination, for any
reason, of any of the concession contracts to which the Issuer is a party
representing separately or jointly an amount equal to 30% (thirty per cent) or
more of the net operational revenue of the Issuer as stated in its last prior
financial statements;

(f) termination, for any
reason, of any of the concession contracts to which CEMIG is a party
representing separately or jointly an amount of 30% (thirty per cent) or more
of the consolidated net operational revenue of CEMIG as shown in its last prior
financial statements at the time;

(g) legitimate protest of
securities against the Issuer, or CEMIG, or any of their subsidiaries or
affiliated companies, in an amount exceeding R$ 50,000,000.00 (fifty
million Reais), unless made in error or bad faith of a third party validly
proven by the Issuer, by CEMIG or by any of its subsidiaries or affiliated
companies as the case may be, or unless suspended or cancelled, or unless a
guarantee for the security(ies) be given in Court, under any circumstances,
within a maximum of 30 (thirty) calendar days from the date on which the
written notice sent by the Fiduciary Agent is received;

(h) absence of compliance
by the Issuer or by CEMIG with any non-pecuniary obligations specified in the
Issue Date, not cured in 30 (thirty) calendar days from the date on which the
written notice sent by the Fiduciary Agent is received;

(i) if the Issuer, or
CEMIG, or any of their subsidiaries or affiliated companies omits to pay on the
maturity date, or does not take the legal or judicial measures required for
non-payment in relation to, any debt or any other obligation payable by the
Issuer, by CEMIG, or by any of their subsidiaries or affiliated companies,
under any agreement or contract to which it is a party as a lender, borrower,
or guarantor, involving an amount of R$ 50,000,000.00 (fifty million
Reais) or more; and/or

(j) privatization, merger, liquidation, dissolution,
extinction, split and/or any form of stockholding reorganization which results
in reduction of the registered capital of the Issuer and/or of CEMIG.

11.1. The occurrence of any of the events indicated in
sub-items (a) to (d) above shall result in automatic early maturity of the
Debentures, independently of any consultation of the Debenture Holders.

11.1.1. In any of the events in sub-items (e) to (j)
above, the Fiduciary Agent shall call, within 48 (forty eight) hours of the
date on which it becomes aware of such event, a meeting of Debenture Holders to
decide on declaration of early maturity of the Debentures, subject to the
procedure for convocation specified in Clause VII of the Issue Deed and the
specific quorum established in item 11.2 below.

11.2. After the General Meeting of Debenture Holders
mentioned in  item 11.1.1 above has been
held, the Fiduciary Agent shall declare early maturity of all the obligations
arising from the Debentures and demand immediate payment by the Issuer of the
Nominal Unit value of the Debentures, plus the Remuneration and charges up to
the date of actual payment, in accordance with item 11 above, unless Debenture
Holders representing at least 2/3 (two-thirds) of the Debentures in circulation
of the Issue opt not to declare early maturity of the obligations arising from
the Debentures.

11.2.1. If the Debenture Holders of the present Issue
opt not to declare early maturity of the obligations arising from the
Debentures, under item 11.2 above, the Debentures held by the Debenture Holders
who do not agree with that decision shall be redeemed by the Issuer o the
earlier of the two following dates: (i) within a maximum of 30 (thirty)
calendar days from the date of the holding of the meeting of Debenture Holders;
or (ii) in the same period in which the Debentures issued under the “Private
Deed of the 1st Public Issue of Non-Convertible Debentures in
Two Series Without Guarantee nor Preference of Companhia Energética de Minas
Gerais – CEMIG” entered into on October 4, 2001, as amended (“the 1st CEMIG Debenture Issue”), or the Debentures
which come to substitute the said debt for a reason similar to that provided
for the redemption of the Debentures as established in item 11.2.1, are in fact
redeemed. The Debentures shall be redeemed for their nominal unit value plus
the remuneration owed, calculated pro rata temporis.

12.          Optional
early maturity

The Issuer shall not have any option for early
redemption of this Issue.

13.          Investor
target public of the Offering

This present Issue may only have, as target public,
the holders of the Debentures of the 3rd CEMIG Issue.

14.          Inappropriateness
of investment in the Debentures

The Debentures that are the subject of the present
Offering are not appropriate for
investors who need considerable liquidity in relation to the securities
acquired, since trading of Debentures in the Brazilian secondary market is
restricted.

Investors should read the “Risk Factors”
section of the Final Prospectus, which is available to investors as stated in
item VII below.

15.          Additional obligations
of the Issuer

15.1. Subject to the other obligations specified in
the Issue Deed the Issuer also undertakes as follows:

15.1.1.                            To supply to the Fiduciary
Agent:

(a)                                  within
a maximum of 45 (forty five) days after termination of its first half business
year a copy of its complete financial statements in relation to that period;

(b)                                 within
a maximum of 90 (ninety) days after the end of each business year, a copy of
its complete financial statements in relation to that business year accompanied
by an opinion of the independent auditors, and a copy of any communication made
by the independent auditors to the Issuer, or to its management, and the
respective answers, with reference to the system of accounting, management or
the accounts of the Issuer;

(c)                                  a
copy of the periodic and occasional information demanded by CVM Instruction 202
of December 6, 1993 (as amended), within the period therein specified and,
within a maximum of 45 (forty five) days after termination of the quarters of a
year completed on March 31, June 30 and September 30 of each year, a copy of
its Quarterly Information (ITRs), accompanied by an opinion of the independent
auditors;

(d)                                 notice
of the convocation of any General Meeting, with minimum prior notice of 3
(three) business days, and promptly to supply copies of all the minutes of all
the General Meetings, and also the date and agenda of the General Meeting to be
held and of all the meetings of the Board of Directors, the Executive Board and
the Audit Board;

(e)                                  the
notices to the Debenture Holders, material announcements and minutes of General
Meetings which in any way involve the interests of the Debenture Holders, on
the same date as they are published;

(f)                                    immediately,
any information relevant to the Issue which may be requested from it at any
time;

(g)                                 a
copy of any correspondence or Court or extrajudicial notification received by
the Issuer in relation to the Debentures or the Issue Deed, immediately after
its receipt;

(h)                                 the
proofs of compliance with its obligations in relation to the Debenture Holders
in a period of up to 5 (five) calendar days from the respective date of their
maturities;

(i)                                     information
on the occurrence of any of the events indicated in item 11 above, as rapidly
as possible, within the earlier of the following time limits: (i) a maximum of
10 (ten) calendar days from the date on which it becomes aware of the event’s
occurrence, or (ii) the same period in which CEMIG informs the Fiduciary Agent
of the 1st CEMIG Debenture Issue of the occurrence of any
of the events leading to early maturity in relation to that issue, or to the
issue of Debentures which come to substitute it. This information should be
accompanied by a report of the Issuer containing the description of the occurrence
and of the measures which the Issuer intends to take in relation to such event.
If this information arises from an event, act or fact which gives rise to
publication of a material announcement by the Issuer, under CVM Instruction
358, of January 3, 2002 (“CVM Instruction 358”), the disclosure of such event,
act or fact to the Fiduciary Agent should take place concomitantly with its
disclosure to the market, in accordance with the said CVM Instruction 358,
subject to the maximum period here specified.

15.1.2.                                    To
give adequate publicity to the economic-financial data, in the terms demanded
by the Corporate Law, and publishing its annual financial statements.

15.1.3.                                    To
keep its accounts up to date and make the respective registries in accordance
with accounting principles generally accepted in Brazil, and allow
representatives of the Fiduciary Agent (or of an independent auditor contracted
by the Fiduciary Agent, at the Issuer’s expense) to have unrestricted access to
the books and other accounting records of the Issuer.

15.1.4.                                    To
call, in accordance with item 7.1 of the Issue Deed, a General Meeting of
Debenture Holders to decide on any of the matters which directly or indirectly
are related to the present Issue if the Fiduciary Agent does not do so.

15.1.5.                                    To
comply with all orders issuing from the CVM, with sending of documents, and
providing all the information requested of it.

15.1.6.                                  To
submit, in accordance with the law, its accounts and financial statements to
examination by an independent auditing company registered with the CVM.

15.1.7.                                    To
keep the listed company registry updated at the CVM, and to supply to its
Debenture Holders the financial statements prepared and approved, specified in
Article 176 of the Corporate Law, when requested.

15.1.8.                                  To
keep an organized body or department in appropriate working conditions to deal
efficiently with the Debenture Holders, or to contract financial institutions
authorized for the provision of this service.

15.1.9.                                  Not
to carry out operations outside its objects as declared in its By-laws, subject
to the provisions of the By-laws, laws and regulations in force.

15.1.10.                           To
notify the Fiduciary Agent about any act or fact which could cause interruption
or suspension of the activities of the Issuer, within a maximum period of 30
(thirty) days from the occurrence of the even.

15.1.11.                           To
maintain its assets appropriately insured, in accordance with current
practices.

15.1.12.                           Not to
carry out any acts that are contrary to the By-laws and the Issue Deed,
especially those which could directly or indirectly compromise punctual and
full compliance with the obligations assumed by the Issuer in relation to the
community of Debenture Holders.

15.1.13.                             To
keep all the operating licenses, licenses, authorizations, concessions or
approvals necessary for the regular functioning of the company in a valid
status, making all and every payment necessary for this purpose.

15.1.14.                           To pay
on time all the taxes payable to the federal, state or municipal tax authorities.

15.1.15.                             To
maintain, conserve and preserve all its assets (tangible and intangible) such
as are necessary or useful for the due conduct of its activities in good order
and functioning condition, with the exception of normal wear and tear.

15.1.16.                           Not to
make any material alteration, while the Debentures exist, in the nature of its
business, as conducted on the present date, and not to make any alteration in
the legal form of its businesses, as they may exist on the present date, except
when and if demanded by the legislation in force or by the regulations issued
by the Concession-Granting Power.

15.1.17.                           To
comply, in all aspects, with all the applicable laws, rules, regulations and
orders, in any jurisdiction in which it carries out business or owns goods.

15.1.18.                           To cause
the respective risk rating agency or agencies to maintain updated ratings of
this present public offering during the period of validity of the Debentures,
supplying the Fiduciary Agent with a copy of annual reviews of ratings within 5
(five) business days after their disclosure.

II.            THE COMPANY

CEMIG Distribuição S.A.

Avenida Barbacena 1200, 17th Floor, A1 Wing,

30190-131 Belo Horizonte, MG, Brazil.

Tel: (31) 3299-4903

Fax: (31) 3299-3832

Internet: www.cemig.com.br

III-           THE LEAD MANAGER

UNIBANCO – União de Bancos
Brasileiros S.A.

Office of the Capital Markets Director

Att: Rogério Assaf Freire

Avenida Eusébio Matoso 891,

05423-180 São Paulo, SP, Brazil

Tel: (11) 3097-4396

Fax: (11) 3097-4127

E-mail:
rogerio.freire@unibanco.com.br

Internet: www.unibanco.com.br

IV.           MANDATED BANK AND CLERK OF THE ISSUE

Banco Itaú S.A.

Av. Eng Armando de Arruda Pereira
707, 9th Floor,

São Paulo, SP, Brazil.

CEP: 04344-902

Att. Luiz Loureiro

Tel: (11) 5029-1905

Fax: (11) 5029-1917

E-mail: luiz.loureiro@itau.com.br

V.            FIDUCIARY
AGENT

Pavarini Distribuidora de
Títulos e Valores Mobiliários Ltda.

Rua Sete de Setembro 99, 24th Floor,

20050-050 Rio de Janeiro, RJ,
Brazil.

CEP: 20050-050

Att. Mr. Carlos Alberto Bacha /
Mr. Rinaldo Rabello Ferreira

Tel: (21) 2507-1949

Fax: (21) 2507-1773

E-mail: pavarini@pavarini.com.br

Internet: www.pavarini.com.br

VI.           REGISTRY
OF THE OFFERING WITH THE CVM

THIS OFFER WAS REGISTERED WITH THE BRAZILIAN
SECURITIES COMMISSION (CVM) UNDER NUMBER CVM/SRE/DEB/2006/041, ON OCTOBER 26, 2006.

VII.         DATE
OF COMMENCEMENT OF PUBLIC DISTRIBUTION

The date of commencement of public distribution is
November 1o, 2006.

VIII.        PROSPECTUS,
ADDITIONAL INFORMATION AND SERVICE TO THE DEBENTURE HOLDERS

The Final Prospectus of the present Offering is available
in the offices and on the websites of the Lead Manager and the Issuer of this
Issue, and of the Brazilian Securities Commission (CVM), and also at the CETIP.

More information may be obtained from the Lead Manager
of this Offering or at the CVM.

As well as the addresses of the Lead Manager, and the
Mandated Bank and Clerk of the Issue, the following are other relevant
addresses:

	
  CBLC – Companhia Brasileira
  de Liquidação e 

  	
   

  	
  CETIP –
  Câmara de Custódia e de Liquidação

  
	
  Custódia

  	
   

  	
  Rua Líbero
  Badaró 425, 24th Floor,

  
	
  Rua XV de
  Novembro 275,

  	
   

  	
  01009-00 São
  Paulo, SP, Brazil.

  
	
  01013-001 São
  Paulo, SP, Brazil.

  	
   

  	
  Tel: (11)
  3111-1596

  
	
  Att. Charles
  Mann de Toledo

  	
   

  	
  Fax: (11)
  3115-1564

  
	
  Tel: (11)
  3233-2720

  	
   

  	
  E-mail: gr.debentures@cetip.com.br

  
	
  Fax: (11)
  3233-2051

  	
   

  	
   

  
	
  E-mail: ctoledo@bovespa.com.br

  	
   

  	
   

  

 

BOVESPAFIX – BOVESPA

Rua XV de Novembro 275,

São Paulo, SP, Brazil

www.bovespa.com.brExhibit
4.19

REGISTRY OF THIS DISTRIBUTION DOES NOT IMPLY ANY
GUARANTEE BY THE CVM OF THE TRUTHFULNESS OF THE INFORMATION GIVEN NOR ANY
JUDGMENT ON THE QUALITY OF THE ISSUER, NOR ON THE DEBENTURES TO BE DISTRIBUTED.

	
  

  	
  The present Public Offering was prepared in
  accordance with the terms of the Self- Regulation Code of ANBID for Public
  Offers for distribution and acquisition of securities, which has been
  registered at the 4th Registry Office for Securities and Documents of the
  district of São Paulo, São Paulo State, under No. 4890254, and the present
  Public Offering thus complies with the minimum standards of information contained
  in the Code, and ANBID has no responsibility for the said information, for the
  quality of the Issuer and/or the Offering party/ies, nor of the participating
  institutions nor the securities that are the subject of the present Public
  Offering. 

  

 

ANNOUNCEMENT OF COMMENCEMENT OF PUBLIC DISTRIBUTION OF

UNSECURED, NON-PREFERENCE
NON-CONVERTIBLE UNSECURED DEBENTURES

Unibanco (União de Bancos Brasileiros S.A.). as Lead Manager, hereby announces the
commencement of distribution for public subscription of 62,500 nominal,
unsecured, non-preference, book-entry non-convertible debentures, divided into
two series – 31,250 debentures of the 1st Series, with nominal unit value of
R$ 15,641.490773, and 31,250 debentures of the 2nd Series with nominal unit value of
R$ 16,131.837123, issued by:

Listed company

CNPJ n°  06.981.176/0001-58

Avenida
Barbacena, 1200, 12th Floor, A1 Wing,

30190-131 Belo Horizonte, Minas Gerais, Brazil.

ISIN: BRCMGTDBS005
– 1st Series

ISIN: BRCMGTDBS013 – 2nd Series

in the amount of

R$ 992,916,496.75

RISK RATING

	
  Fitch

  	
   

  	
  Moody’s

  
	
  A+(bra)

  	
   

  	
  Aa3.br

  

 

I               INFORMATION ON THE ISSUER AND DISTRIBUTION OF
THE DEBENTURES

1.             Full name and
principal place of business

Cemig Geração e
Transmissão S.A. (“the Issuer” or “Cemig GT”), a corporation with head office
in the jurisdiction of the city of Belo Horizonte, Minas Gerais State, Brazil,
at Avenida Barbacena 1200, 12th Floor, B1 Wing, registered in the CNPJ/MF under
number 06. 981.176/0001-58, with its Articles of Association filed at the
Commercial Board of the State of Minas Gerais, under NIRE No. 31300020550.

2.                      Decision and Deed of the Issue

2.1.          Corporate decisions:
The Offer was approved at the 22nd meeting of the Board of Directors of the
Issuer held on February 20, 2006, the minutes of which were re-ratified by the
37th meeting of the Board of Directors of the
Issuer held on November 23, 2006. The guarantee that will be provided by
Companhia Energética de Minas Gerais – Cemig (“Cemig”) was authorized by the
372nd Meeting of the Board of Directors of Cemig,
held on January 25, 2006.

2.2           Issue
Deed: The terms and conditions of the Offer are contained in the “Private
Deed of the 1st Public Issue of Non-Convertible Debentures,
Divided into Two Series, of Cemig Geração e Transmissão S.A., entered into on
February 28, 2007 (“the Issue Deed”). The
Issue Deed was filed at the Commercial Board of the State of Minas Gerais on
March 19, 2007, under No. ED000037-0/000.

3.             Characteristics of
the Debentures

3.1.          Total amount of the
Issue: R$ 992,916,496.75

3.2.          Issue Date:  November 1, 2006.

3.3.          Nominal unit value:
On the Issue Date the nominal unit value of the Debentures of the 1st Series is R$ 15,641.490773 the nominal
unit value of the Debentures of the 2nd Series is R$ 16,131.837123

3.4           Series number:
The Issue is effected in two series.

3.5             Number of
Debentures: 62,500, being 31,250 of the 1st Series and 31,250 of the 2nd Series.

3.6             Form: The
Debentures are in the nominal, book-entry form, without issue of deposits or
certificates.

3.7             Convertibility:
The debentures are not convertible into shares.

3.8             Type: The
Debentures are of the unsecured, non-preference type.  

3.9             Guarantee: The
Debentures have a guarantee given by Cemig. 

3.10           Use of proceeds:
By reason of the Obligatory Exchange, the Issuer will not receive any net
proceeds from this Offer, since the Debentures will be paid up by the
Debentures issued under the 1st Cemig Issue. The proceeds of the 1st Cemig Issue were allocated to financing of
projects in generation and distribution of electricity, including projects
involving partnership with companies of the private sector, under Cemig’s
program of generation and transmission works 
for the years 2001 and 2002 and for the first quarter of 2003, as
described in Clause 3.4 of the Issue Deed.

3.11           Maturity: The
tenor of the Debentures of the 1st Series is 36 months from the Issue Date, with
final maturity on November 1, 2009; and the tenor of the Debentures of the 2nd Series will be 60 months from the Issue Date,
with final maturity on November 1, 2011.

3.12           Obligatory Exchange:
The present Offer is carried out for the purposes of the Obligatory Exchange of
the Debentures of the 1st Cemig Issue for the Debentures of this Offer,
with the consequent cancellation of the Debentures of the 1st Cemig Issue (“the Obligatory Exchange”).

3.13           Programmed
amortization: The Debentures will not be the subject of programmed
amortization before the maturity date.

3.14           Alternative payment
mechanism: In the event of non-payment by the Issuer of any amount payable
in relation to the Debentures or specified in the terms of the Issue Deed, on
their respective maturity dates, the Debentures shall have Cash Value (“Cash
Value”) in that they shall be obligatorily accepted by the Issuer as
payment by the Debenture Holders of invoices for retail supply of electricity
issued by the Issuer, in accordance with Clause VI of the Cemig GT Issue Deed (“Cash
Value”).

4.            Remuneration

4.1             Remuneration
of the Debentures of the First Series: The Debentures of the First Series shall not have their nominal
value updated, and shall yield interest corresponding to the accumulated
variation of 100% of the average daily interbank deposit rate, “extra grupo” (“the
DI Rate”), calculated and published by the Custody and Settlement Chamber (“CETIP”),
capitalized by a spread of 1.2% per year, on the basis of a year of 252
business days, applied to the balance of the nominal value of the Debentures
for each period of capitalization of the First Series, that is to say, from the
maturity date of the Remuneratory Interest immediately prior to the date of its
actual payment (“the Capitalization Period of the First Series”). The
Remuneration of the Debentures of the First Series will be paid annually, on
November 1 of the years 2007, 2008 and 2009.

4.2.            Remuneration of the Debentures of the Second
Series: The
Debentures of the Second Series shall not have their nominal value updated and
shall yield interest corresponding to the accumulated variation of 104.0% (one
hundred and four per cent) of the one-day “extra-grupo” Interbank Deposit Rate
calculated and published by CETIP in its daily bulletin available on the CETIP
internet site (http://www.cetip.com.br) (“the DI Rate”). The
Remuneration shall be calculated on an exponential basis, cumulative pro rata temporis by business days elapsed, applied to the
balance of the Nominal Value of the Debenture for each period of capitalization
of the Second Series, that is to say, the interval of time that begins on the
Issue Date, in the case of the first capitalization period, or on the date
specified for payment of the immediately previous Remuneration, in the case of
the other capitalization periods, and terminates on the date specified for the
payment of the Remuneration corresponding to the period (“the Capitalization
Period of the Second Series”). The Remuneration of the Debentures of the
Second Series shall be paid annually, on November 1 of the years 2007, 2008,
2009, 2010 and 2011.

4.3.            Non-availability of
the DI Rate: In the event of temporary non-availability of the DI Rate on
the occasion of the payment of any pecuniary obligation resulting from the
setting of the Remuneratory Interest, the same daily rate produced by the last
known DI Rate, up to the date of the calculation, shall be used, and no
financial compensation whatsoever shall be payable either by the Issuer nor by
the Debenture Holders, on the occasion of the subsequent publication of the
respective DI Rate.

4.3.1.        In the absence of
calculation and/or publication of the DI Rate for a period of more than 15
(fifteen) consecutive business days after the Issue Date, or, further, in the
event of its abolition or non-applicability by reason of imposition of law, the
average rate of daily financings backed by Federal Securities, calculated in
the Special Settlement and Custody System (“the Selic Rate”) shall be
used in substitution thereof, or, in its absence, the reference rate of the
National Financial System which comes to substitute the Selic rate (“the
Substitute Rate”).

4.3.2.      In the event that there is no
Substitute Rate, the fiduciary agent shall, within a maximum of 30 (thirty)
calendar days from (i) the fifteenth consecutive business day of absence of
calculation and/or publication of the DI Rate, or (ii) of the abolition or
non-applicability by reason of imposition of law of the DI Rate, hold a General
Meeting of Debenture Holders to decide, by common agreement with the Issuer,
subject to the applicable regulations, the parameter to be used for the
remuneration of the Debentures, which shall be proposed by the Issuer. Up to
the decision on this parameter, the same daily rate produced by the last known
DI Rate shall be used for the calculation of the amount of any obligations
referred to in this item, up to the date of the decision of the General Meeting
of Debenture Holders.

4.3.3.      If the Substitute Rate is
published before the holding of the General Meeting with Debenture Holders, the
said meeting shall no longer be held, and the Substitute Rate, as from its
publication, shall become the rate used for the calculation of the Remuneratory
Interest of the Debentures.

4.3.4.      If, at the General Meeting of
Debenture Holders, the parameter to be used for the Remuneration of the
Debentures is not decided in common accord between the Issuer and the Debenture
Holders, the Issuer, in common accord with the Debenture Holders, shall choose
one of the 5 (five) largest first-line banks in Brazil for the calculation of
the new parameter of the Remuneratory Interest. The bank chosen shall adopt the
new parameter for the purposes of calculation of the Remuneratory Interest in
such a way as to preserve the original Remuneration of the Debentures, taking
into account, including for this purpose, the last 15 (fifteen) prior
transactions of public issuance of Debentures in the Brazilian market.

5.             Limit
of the Issue

The Issue complies with the limits specified in
Article 60 of Law 6404/76, since the registered capital of the Issuer on the
Issue Date was R$ 2,896,785,358.90.

6.             Right
of preference

Present Stockholders of
the Issuer shall have no right of preference for subscription of the
Debentures.

7.             Conditions of
subscription and paying-up 

7.1.          Subscription price:
The subscription price of the Debentures shall be their Nominal Unit value,
augmented by the Remuneration, calculated pro rata temporis from the Issue Date
to the date of paying-up, in accordance with item 4 above. 

7.2.          Form of paying-up:
The paying-up of the Debentures shall be at sight, by giving, in exchange, of
the Debentures of the First Cemig Issue, in the terms of the Obligatory Exchange.
Each Debenture of the First Series of the First Cemig Issue shall correspond to
1 (one) Debenture of the First Series of this Offer; and each Debenture of the
Second Series of the First Issue of Cemig shall correspond to 1 (one) Debenture
of the Second Series of this Offer.

7.2.1.      By reason of the allocation
to the issue of the rights and obligations arising from the Debentures of the
First Cemig Issue, as specified in the Private Instrument of Assignment of
Rights entered into between the Issuer and Cemig on December 27, 2004, the
Debentures of the First Issue of Cemig, received by the Issuer in full payment
of the Debentures of this Offer, shall be cancelled immediately after the
obligatory exchange takes place.

7.3.          Payment of the
principal, and place of payment: The full value of the principal of the
Debentures shall be paid on the dates of maturity of the respective Series,
that is to say, November 1, 2009 for the First Series and November 1, 2011 for
the Second Series. The payment to which the Debentures are entitled shall be
made, as the case may be: (a) using the procedures adopted by the Brazilian
Settlement and Custody Company (“CBLC”), for the Debentures registered
on the BOVESPA FIX; or (b) the procedures adopted by CETIP, for the Debentures
registered on the SND; or (c) for the holders of the Debentures of this Issue
who are not linked to either of these systems, at the head office of the Issuer
or at the head office of Banco Itaú S.A. (“the Mandated Bank”, or “the
Clerk of the Issue”).

7.4.          Exemption of Debenture
Holders: If any Debenture Holder has any type of tax immunity or exemption,
such holder must deliver documentation of proof of this tax immunity or
exemption to the Mandated Bank and Clerk of the Issue within 10 (ten) business
days prior to the date set for receipt of amounts relating to the Debentures. 

7.5.          Extension of maturity
periods: The periods relating to the payment of any obligation by any of
the parties, including the Debenture Holders, in relation to the payment of the
subscription price, shall be considered extended up to the first subsequent
business day if the maturity coincides with a day on which there is not a
commercial or banking business day in the cities of São Paulo and/or Belo
Horizonte, in the States of São Paulo and Minas Gerais respectively, without
any addition 

to the amounts to be paid, with the exception of cases
whose payments are to be realized by the CETIP or by the CBLC, in which event
there shall only be postponement when the date of payment is a national
holiday, a Saturday or a Sunday.

7.6.          Penalty payment and
charges for arrears: If there is non-punctuality in the payment of any
amount payable to the holders of the Debentures, the amounts in arrears shall
be subject to a penalty payment of 10% on the amount payable, plus arrears
interest calculated from the date of entering into arrears up to the date of
actual payment at the rate of 1% per month on the amount owed, independently of
advice or notice or interpolation in the Courts or otherwise, as well as the
expenses incurred for collection.

7.7.          Expiry of the right to
increases: Without prejudice to the terms of the previous item,
non-appearance by the Debenture Holder to receive the amount corresponding to
any of the pecuniary obligations of the Issuer, on the dates specified in the
Issue Deed, or in a notice published by the Issuer, shall not give it the right
to receive Remuneration Interest and/or arrears charges in the period
corresponding to the delay in receipt, save that in any event acquired rights
shall be guaranteed up to the date of the respective maturity. 

7.8.          Alternative form of
receipt: Without prejudice to the terms of item 12 below, if decided by
Debenture Holders representing 100% of the Debentures in circulation, in a
General Meeting of Debenture Holders held specially to decide on the matter,
the payment of any amount payable by the Issuer under the Issue Deed may be
carried out through exchange for goods and/or rights acceptable to the
Debenture Holders. With the exception of the provisions of item 12 below, no
payment of amounts payable by the Issuer under the Issue Deed may be made in
any form other than Brazilian currency without the approval of the Debenture
Holders.

8.             Distribution
placement and procedure  

8.1.          The Obligatory Exchange
of the Debentures shall commence only after concession by the CVM of registry
of the Offer, after the Final Prospectus of the Offer has been placed at the
disposal of the investors and after publication of this Announcement of
Commencement of Distribution. The placement of the Debentures of the Second
Series shall begin only after the full placement of the Debentures of the First
Series.

8.2.          Best Efforts: The
Debentures shall be the subject of public distribution, under the best efforts
distribution regime, with intermediation of financial institutions that are
part of the Securities Distribution System, through the SDT (Securities
Distribution System), administered by CETIP, based on policies and guidelines
fixed by ANDIMA (the National Association of Financial Market Institutions),
and through the BOVESPAFIX System, with settlement and custody at the CBLC, and
target public of this present Issue shall be solely the holders of the
Debentures of the First Cemig Issue.

8.2.1.      The mechanism of Obligatory
Exchange shall be carried out as provided for by Clause XI of the Deed of the
First Cemig Issue, as amended, and the paying-up of the Debentures shall be at
sight, by exchange for the Debentures of the 1st Cemig Issue, in the terms of the Obligatory
Exchange, and each Debenture of the 1st Cemig Issue shall correspond to 1 (one)
Debenture of this Issue. 

8.3.          Secondary market: The Debentures shall
be registered for trading in the secondary market: (i) through the SND, managed
by the CETIP, based on the policies and guidelines set by ANDIMA, the
Debentures having settlement and custody at the CETIP; and (ii) through the
BOVESPAFIX system, with settlement and custody at the CBLC.

9.             Optional acquisition

The Issuer may, at any
time, acquire the Debentures in circulation in the market, for a price not
greater than their nominal value plus the remuneration, subject to Article 55
of Law 6404/76. The Debentures that are the subject of such acquisition may be
cancelled, remain in the Issuer’s Treasury, or be placed once again in the
market. 

10.          Early maturity

The fiduciary agent shall declare all the obligations
relating to the Debenture to become due for payment immediately and demand
immediate repayment by the Issuer and by Cemig, of their nominal amount, after
monetary updating, as the case may be, augmented by the remuneratory interest
payable up to the date of actual payment, independently of any notice or
interpellation in the Courts or otherwise, in any of the following events:

a) non-payment on the respective maturity date of the
principal or interest payable by reason of the Debentures;

b) legitimate and reiterated protest of securities
against the Issuer or against Cemig, in a global amount of more than
R$ 10,000,000.00, unless protest has been made in error or in bad faith on
the part of the third party, provided that this be validly proven by the
Issuer, by Cemig, or by any one of its Subsidiaries (“the Subsidiaries”),
or if cancelled or, further, if guarantees are given in Court, but in any event
within a maximum of 30 calendar days from the date on which written notice sent
by the Fiduciary Agent is received;

c) an application for Judicial Recovery made by the
Issuer, by Cemig or by any of its Subsidiaries;

d) extinction, dissolution or declaration of
bankruptcy of the Issuer, of Cemig or of any of its Subsidiaries;

e) non-compliance, by the
Issuer or by Cemig, with any obligation specified in the Issue Deed, not cured
in 30 calendar days from the date on which written notice sent by the Fiduciary
Agent is received;

f) if
the Issuer, Cemig or any of the subsidiaries unjustifiably ceases to pay, on
the maturity date, or does not take the legal or Court measures required for
non-payment of, any debt or any other obligation owed by the issuer, by Cemig
or by any of its Subsidiaries, under any agreement to which it is a party as
borrower or guarantor, involving an amount of R$ 10,000,000.00 or more;

g) early maturity of any debt of the Issuer, or Cemig
or of any its Subsidiaries, in an amount of R$ 10,000,000.00, or more, by
reason of contractual default or otherwise, the amount of which may in any way
prejudice compliance with the pecuniary obligations of the Issuer or of Cemig
specified in the Issue Deed;

h) privatization, liquidation, dissolution, extinction,
split and/or any form of stockholding reorganization involving the Issuer,
Cemig or any of its Subsidiaries and/or their assets, unless this Stockholding
Restructuring takes place (i) in relation to the following subsidiaries of
Cemig: Companhia de Gás de Minas Gerais – Gasmig, Empresa de Infovias S.A. or
WAY TV Belo Horizonte S.A.;

i) termination, for any reason, of any of the
concession contracts held by the Issuer, by Cemig or by any of its
Subsidiaries; or

j) issue of any securities and/or contracting of any
obligations which may in any way affect the alternative payment mechanism (“Cash
Value”) as established in item 11 below.

10.1.       In any of the events
mentioned in item 10 above, except in cases of non-payment of principal or
interest of the Debentures, extinction, dissolution or declaration of
bankruptcy of the Issuer, the Issuer may call a General Meeting of Debenture
Holders to request waiver by the Debenture Holders of the right to declare
early maturity of the Debentures. The waiver of any of the early maturity
events must be approved by Debenture Holders representing two-thirds of the
Debentures in circulation, in a General Meeting of Debenture Holders
specifically called by the Issuer for this purpose. In the event of approval of
the waiver by the Debenture Holders, the Issuer shall redeem, within 10
business days from the date of the General Meeting of Debenture Holders, the
Debentures held by those Debenture Holders who do not agree with the respective
waiver, for their Nominal Value updated and augmented by the Remuneration
calculated pro rata temporis. Debentures so redeemed shall be canceled by
the Issuer.

11.          Alternative payment
method – Cash Value

11.1.       In the event of non-payment
by the Issuer of any amount payable in relation to the Debentures or under the
Issue Deed on the respective Maturity Dates and without prejudice to the
provisions of item 4 – Remuneratory Interest, and 7.6 – penalty payment and
arrears charges, all and any amount owed by reason of the Debentures,
including, but not limited to, Remuneratory Interest and/or penalty payment and
other arrears interest, which has become due and not been paid by the Issuer,
on the dates established in the Issue Deed, the Debentures shall have power for
payment and may be used by the Debenture Holders at any time for payment of
invoices for the supply of electricity issued by the Issuer, by simple exchange
by the Debenture Holders of the credit represented by the amounts owed under
the Debentures, including but not limited to Remuneratory Interest, penalty
payment and other arrears charges, if applicable, against the debit represented
by the invoice for supply of electricity charged by the Issuer.

11.2.       Those holders of the
Debentures who notified the Fiduciary Agent of their intention to use the Cash
Value shall automatically be exempting the Fiduciary Agent from the obligation
to begin the procedures necessary for execution of the Debentures and 

the other procedures specified in Article 13 of CVM
Instruction 28/83, without prejudice, however, to the rights of the Debenture
Holders if the Cash Value facility is not used in relation to the totality of
the Debentures held by them, or is not sufficient for the settlement of all the
Debentures of these Debenture Holders.

11.3.        The daily calculation of
the Nominal Unit value of the Debentures, augmented by the respective
Remuneration and the penalty payment and other arrears charges, for the
purposes of payment by exchange, shall be effected by the Mandated Bank (Clerk
of the Issue), by the Fiduciary Agent and by the Issuer and advice of such
payment shall be given on the same date by the Mandated Bank (Clerk of the
Issue), after its final calculation, to the Issuer, to CETIP, to CBLC and to
the Fiduciary Agent. Calculation, retention and payment of the income tax
payable by the Debenture Holder shall be obeyed in accordance with the law.

12.          Investor target public of the Offering

The sole target public of this Issue is the holders of
Debentures of the First Cemig Issue.

13.          Inappropriateness of investment in the Debentures

The Debentures that are the subject of the present
Offer are not
appropriate to investors who need considerable liquidity in relation to
securities acquired, since trading in Debentures in the Brazilian secondary
market is limited.

Investors should read the section entitled “Risk
Factors” of the final Prospectus, available to investors as specified in  item VIII below.

14.          Additional obligations
of the Issuer 

Subject to the other obligations specified in the
Issue Deed, the Issuer further undertakes:

a)     not to carry out operations
outside its registered objects, obeying the provisions of the Bylaws, and the
provisions of law and regulations in force;

b)    to notify the Fiduciary Agent
of any act or fact which could cause interruption or suspension of the Issuer’s
activities.

c)     not to pay dividends, other
than those specified in Article 202 of Law 6404/76, nor any other share
provided for in the Bylaws, if it is in arrears, in relation to the payment of
any amounts payable to the Debenture Holders, relative to the Debentures that
are the subject of the Issue Deed, such prohibition to cease as long as the
said arrears are cured;

d)                 to
acquire, if there is a change in the stockholding control of the Issuer or of
Cemig, such Debentures of this Issue as may be in circulation, at the option of
the Debenture Holders who do not agree to remain as Debenture Holders of the
Issuer after the change of its stockholding control. The Debenture Holders
shall be advised of the purchase offer by a specific notice published within 15
(fifteen) calendar days from the date of the effective change in stockholding
control, that is to say, from the date of signature of the Contract of Purchase
and Sale, with a period of not less than 60 (sixty) calendar days for the
interested Debenture Holders to state their position, from the date of
publication of the notice and in accordance with the procedures therein
described. Acquisition by the Issuer of the Debentures shall take place in up
to 30 (thirty) calendar days from the statement of position by the Debenture
Holders. For the purposes of this item, change in stockholding control is
defined as disposal by the present controlling stockholder of the Issuer,
Cemig, or by the present controlling stockholder of Cemig, the Government of
the State of Minas Gerais, of 50% plus one share of the voting stock of the
Issuer or of Cemig, respectively.

e)                  to
keep its assets adequately insured, in accordance with current practices;

f)                    not
to carry out any acts that are not in accordance with the Bylaws and the Issue
Deed, especially such acts as might directly or indirectly compromise punctual
and full compliance with the obligations assumed by the Issuer to the communion
of Debenture Holders;

g)  to keep all operational licenses,
licenses, authorizations, concessions or approvals that are necessary to the
regular functioning of the Issuer valid and regular, making all and any payment
necessary for this purpose;

h)  to keep all taxes payable to the
federal, state or municipal tax authorities paid up-to-date;

i)   to maintain, conserve and
preserve all of its assets (tangible and intangible) such as are necessary or
useful for the due conduct of its activities, in good order and condition of
functioning, except for normal wear and tear;

j)   while the Debentures exist, not
to make any material alteration in the nature of its business, as conducted at
the present date, and not to make any alteration in the legal form of its
business, as it exists on the present date, except when and if demanded by the
legislation in effect or by the regulations issued by the concession-granting
power.

k)  to comply, in all aspects, with
all the laws, rules, regulations and orders applicable, in any jurisdiction in
which it carries out business or possess assets.

II.            THE COMPANY 

Cemig Geração e Transmissão S.A.

Office of the Chief Financial and Investor
Relations Officer  

Att: Luiz Fernando Rolla

Avenida Barbacena 1200, 18th Floor, B2 Wing,

30190-131 Belo Horizonte, MG, Brazil.   

Tel: (31) 3299-4903

Fax: (31) 3299-3832

Internet:
http://cemiggt.infoinvest.com.br

III.           THE LEAD MANAGER

UNIBANCO – União de Bancos
Brasileiros S.A.

Office of the Capital Markets Director

Att: Rogério Assaf Freire 

Avenida Eusébio Matoso 891,

05423-180 São Paulo, SP, Brazil 

Tel: (11) 3097-4396

Fax: (11) 3097-4127

E-mail:
rogerio.freire@unibanco.com.br

Internet:  www.unibanco.com.br 

IV.           MANDATED BANK AND CLERK OF THE ISSUE

Banco Itaú S.A.

Av. Eng Armando de Arruda Pereira
707, 9th Floor, 

São Paulo, SP, Brazil. 

CEP: 04344-902 

Att. Luiz Loureiro 

Tel: (11) 5029-1905 

Fax: (11) 5029-1917 

E-mail: luiz.loureiro@itau.com.br  

V.            FIDUCIARY
AGENT

Planner
Corretora de Valores S.A.

Av. Paulista 2439, 11th Floor,

01311-300 São Paulo, SP, Brazil

At. Viviane Rodrigues

Telefone: (11) 2172-2628

Fax: (11) 3060-9575

E-mail: 
vrodrigues@plannercorretora.com.br

VI.           REGISTRY OF THE OFFER
WITH THE CVM

The Issue had been previously submitted to the
CVM, and the 1st and 2nd Series registered under No’s CVM/SRE/DEB/2007/003
and CVM/SRE/DEB/2007/004, on April 17, 2007.

VII.         DATE OF COMMENCEMENT OF
PUBLIC DISTRIBUTION 

The date of commencement
of public distribution is April 27, 2007.

VIII.        PROSPECTUS, ADDITIONAL
INFORMATION AND SERVICE TO THE DEBENTURE HOLDERS

The Final Prospectus of
the present Offer is available in the offices and on the websites of the Lead
Manager (www.unibanco.com.br), the Issuer (http://cemiggt.infoinvest.com.br),
the Fiduciary Agent (www.fiduciario.com.br), the Brazilian Securities
Commission (CVM) (www.cvm.gov.br),  CETIP
(www.cetip.com.br), and the CBLC(www.cblc.com.br).

More information may be
obtained from the Issuer, the Lead Manager or the CVM.

As well as the addresses
of the Issuer, Lead Manager, and the Mandated Bank and Clerk of the Issue, the
following are other relevant addresses:

	
  CBLC – Companhia Brasileira
  de Liquidação e 

  	
  CETIP – Câmara de Custódia e de Liquidação

  
	
  Custódia

  	
  Rua Líbero
  Badaró 425, 24th Floor,

  
	
  Rua XV de
  Novembro 275,

  	
  01009-00 São
  Paulo, SP, Brazil.

  
	
  01013-001 São
  Paulo, SP, Brazil.

  	
  Tel: (11)
  3111-1596

  
	
  Att. Charles
  Mann de Toledo

  	
  Fax: (11)
  3115-1564

  
	
  Tel: (11)
  3233-2720

  	
  E-mail: gr.debentures@cetip.com.br

  
	
  Fax: (11)
  3233-2051

  	
  Internet:
  www.cetip.com.br

  
	
  E-mail: ctoledo@bovespa.com.br

  	
   

  
	
  Internet:
  www.cblc.com.br

  	
   

  

 

REGISTRY OF THIS DISTRIBUTION DOES NOT IMPLY ANY
GUARANTEE BY THE CVM OF THE TRUTHFULNESS OF THE INFORMATION GIVEN NOR ANY
JUDGMENT ON THE QUALITY OF THE ISSUER, OR ON THE DEBENTURES TO BE DISTRIBUTED.

	
  

  	
  The present Public Offer or
  program was prepared in accordance with the terms of the Self-Regulation Code
  of ANBID for Public Offers for distribution and acquisition of securities,
  which has been registered at the 4th Registry Office for Securities and Documents
  of the district of São Paulo, São Paulo State, under No. 4890254, and the
  present Public Offer/program thus complies with the minimum standards of
  information contained in the Code, and ANBID has no responsibility for the
  said information, nor for the quality of the Issuer and/or the Offering
  party/ies, nor of the participating institutions nor the securities that are
  the subject of the present Public Offer/program.

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