UPDATE 3-Eletrobras to pay $5.65 bln in overdue dividends

* Eletrobras to pay 10.3 billion reais in overdue dividends

* Preferred, common shares jump as much as 14 pct on news

(Adds quote, Bovespa, updates share prices)

SAO PAULO, Jan 22 (Reuters) - Brazil's state-run utility holding Eletrobras (ELET6.SA)(EBR.N) said on Friday it agreed to pay 10.33 billion reais ($5.65 billion) in overdue dividends dating back to the 1970s, sending its shares sharply higher.

The company said it will make the payments in four annual installments in June of 2010, 2011, 2012 and 2013.

"We believe the news ... will produce a positive effect on the company's perceived risk," noted a report from Ativa brokerage.

Eletrobras shares jumped as much as 14 percent on the news. By late afternoon common shares (ELET3.SA) leapt 9.95 percent to 42 reais and preferred shares (ELET6.SA) surged 9.79 percent to 34.76 reais.

The benchmark Bovespa index .BVSP, after spending much of the session in negative territory, was 0.44 percent higher in late afternoon trade.

Brazil's government had plans of injecting $7.9 billion reais into the state-run company so it could pay the overdue dividends. It owes about 5.3 billion reais to BNDES state development bank and 2.7 billion reais to the federal government, according to a local newspaper earlier this week.

Government funds would also allow Eletrobras, formally known as Centrais Eletricas Brasileiras, to invest in new infrastructure projects to help support growth in Brazil's economy.

($1=1.828 reais)

(Reporting by Elzio Barreto; Additional reporting by Luciana Lopez; Editing by Phil Berlowitz)