EDP planning $1 bln debt issue by end 2009-CFO

LISBON, June 25 (Reuters) - Energias de Portugal (EDP.LS) is preparing a debt issue of $1 billion before year-end and has no plans for further bond issues denominated in euros in 2009, said EDP Chief Financial Officer Nuno Alves.

EDP issued last week 1 billion euros of seven-year bonds, raising the company's liquidity to more than 5 billion euros.

"The next issue will be in dollars. We are starting to work on this operation, which should take three or four months to prepare," Alves told reporters during an embargoed presentation on Wednesday.

"We will be ready before the end of 2009. If the market is ready we will do it straight away, if not, we will wait for the right market conditions," he added.

Alves said that due to market turbulence it was a safe policy to carry out long-term refinancing. "We are already financing 2011," he said.

Alves said capital expenditures for this year and next are already fixed but there is flexibility for the two subsequent years. EDP has planned average capital expenditures of 3 billion euros until 2012.

"We are maintaining some flexibility for capex in 2011 and 2012, the (international financial) situation is calmer, but not yet completely calm," he said, adding that EDP has the possibility of delaying 2011 and 2012 investments.

Chief Executive Antonio Mexia told the presentation that EDP stands by its goal of its Brazilian operation contributing 17 percent of earnings before interest, tax, depreciation and amortization this year.

"The signals are positive (in Brazil)," Mexia said.

Turning to the company's renewables unit, EDP Renovaveis (EDPR.LS), Alves said there was no plan to issue more stock in the company until the price is above the price at the initial public offering.

EDP Renovaveis launched an IPO last year at a price of 8 euros per share. The stock closed 0.44 percent higher at 7.35 euros on Wednesday.

He added that the company has no non-core assets it could sell that would have a material impact on financial ratios. The company has previously said it would sell its 8 percent stake in telecoms operator Sonaecom (SNC.LS) this year.

"Our readiness to sell Sonaecom is known, but as an asset it won't have the impact now that it would have a few years ago," he said.

Alves said, however, that EDP will manage to beat its 2009 cost reduction goal of 96 million euros, thanks to restructuring in Brazil and the renegotiation of supply contracts of goods and services.

"I am convinced that we will reach the end of 2009 having beaten the target, which will allow us to beat some slack on the margin due to less demand for electricity," he said. (Reporting by Ruben Bicho; Writing by Axel Bugge; Editing by Greg Mahlich)