On 9 December 2005, in accordance with the provisions of Decree-Law no 209-A/2005, of 2 December, Parpública – Participações Públicas (SGPS), S.A., issued a bond exchangeable into existing EDP shares. The issue was placed with institutional domestic and international investors, in accordance with the provisions of the Council of Ministers Resolution 186-A, of 7 December 2005.

The total bond issued consideration amounted to EUR 572.8 million, with the bonds having an interest rate of 2.69% and an exchange price of EUR 3.58. The underlying security of the Bonds comprised 160 million shares representing approximately 4.376% of EDP's share capital.

The bond matures in five-years from the issue date with exchange options exercisable during the last year of the operation.

On 16 December 2010, Parpública paid the last coupon and the redemption of the invested amount. Considering the absence of any conversion of the bonds into stock, Parpública preserved its 4.376% of EDP's share capital inherent to this operation.