RENOVA ENERGIA S.A. 
By CNPJ/MF Nº 08.534.605/0001-74
NIRE 35.300.358.295
MATERIAL ANNOUNCEMENT
In accordance with CVM Instruction 358 of January 3, 2002, as amended, and for the purposes of Article 7 of CVM Instruction 471 of August 8, 2002, Renova Energia S.A. ("Renova" or "the Company") hereby informs its stockholders and the market in general as follows:
On today's date Renova will file an application with the Brazilian Financial and Capital Markets Association (Anbima) for prior analysis for registry of a secondary public offering ("the Offering") of Certificates of Deposit of Shares issued by the Company ("Units" - each Unit representing one common share and two preferred shares), owned by Banco Santander (Brasil) S.A. ("Santander"), InfraBrasil Fundo de Investimento em Participações ("InfraBrasil") and Fundo de Investimento em Participações Caixa Ambiental - FIP Caixa Ambiental ("FIP Caixa Ambiental"); the said Offering to be submitted to the simplified procedure instituted by CVM Instruction 471 ("the Simplified Procedure"), under the agreement for adoption of the Simplified Procedure signed by the CVM and Anbima, the terms and conditions of which will be approved by a meeting of the Board of Directors of Renova.
The offering will be managed by Bank of America Merrill Lynch Banco Múltiplo S.A. ("BofA Merrill Lynch"), as lead manager, Santander, as stabilizing agent, and Banco BTG Pactual S.A. ("BTG Pactual"), Banco J.P. Morgan S.A. ("J.P. Morgan") and Banco Itaú BBA S.A. ("Itaú BBA"jointly, "the Managers of the Offering"), and will be transacted in a non-organized over-the-counter market, in Brazil, under CVM Instruction 400 of November 29,
2003 as amended ("CVM Instruction 400") and other applicable rules or regulations, with placement efforts outside Brazil, through investment mechanisms regulated by the National Monetary Council (CMN), the Brazilian Central Bank and the CVM.
Placement efforts will be directed, in the USA, only to qualified institutional buyers, as defined in Rule 144A issued by the U.S. Securities and Exchange Commission ("SEC"), in transactions exempt from registry specified in the U.S. Securities Act of 1933, as amended ("the Securities Act"), and in the regulations issued under the Securities Act; and in countries other than Brazil and the USA, to investors constituted in accordance with the legislation in effect in their country of domicile (non-U.S. Persons), on the basis of Regulation S issued by the SEC under the Securities Act, subject to the legislation in effect in the country of domicile of each investor.
The amount of the offering is estimated at approximately [R$ 1.15 billion]. More precise information on this amount will be published at the time of publication of the Preliminary Prospectus, on the dates of publication of the Notice to the Market, the Final Prospectus, and the Commencement Announcement.
A supplementary lot of shares equal to as much as 15% of the totals of Units initially offered may be added to the Offering, under Article 24 of CVM Instruction CVM 400, and may also be augmented by an additional lot in a percentage equivalent to up to 20% of the Units initially offered, under Article 14, Paragraph 2 of CVM Instruction 400.
The subscription price of the Units that are the subject of the Offering will be set after conclusion of a Bookbuilding Procedure - the procedure of collection of investment intentions from institutional investors, in accordance with Article 23, Paragraph 1 and Article 44 of Instruction 400, and will have as its parameter the indication of interest, as a function of the quality and quantity of demand (by volume and price) collected from
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institutional investors during the Bookbuilding Procedure and the market price of the Units issued by the
Company on the BM&FBovespa S.A. (São Paulo Stock, Commodities and Futures Exchange - "BM&FBovespa").
Proceeds: Since the Offer is exclusively a secondary distribution, the Vendor Stockholders will receive the totality of the net proceeds of the Offering. Hence Renova, will receive no funds as a result of its being placed.
Prospectus: The draft of the Preliminary Prospectus of the Offering to be submitted to analysis by Anbima and the CVM will be available on [today's date February,18 2017], on the websites of the Company (www.renovaenergia.com.br), CVM (www.cvm.gov.br) and BM&FBOVESPA (www.bmfbovespa.com.br).
Publication of Guidance: Finally, in obedience to CVM Circular CVM SEP 01/2014, the Company hereby reports that its managers have opted to discontinue publication of Guidance in Section 1 of its Reference Form, due to the need for alignment of its Guidance Policy with the procedures adopted by its external auditors and other consultants in the context of a public offering for distribution of securities issued by the Company in Brazil and the rest of the world, in accordance with CVM Instruction 400.
The Material Announcement is for information only, and is not an offer to sell securities.
São Paulo, February 18, 2014.
Chief Financial and Investor Relations Officer
www.renovaenergia.com.br
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