Iberdrola and GIC, Singapore’s sovereign wealth fund, have closed a deal to develop new electricity transmission networks in Brazil for 2.400 million Brazilian reais (465 million euros). The deal was announced at the end of April and has already been approved by the National Electric Energy Agency (ANEL) and the Administrative Council for Economic Defense (CADE).
Both companies will invest in transmission operating assets in Jalapao, Santa Luzia, Dourados, Atibaia, Biguacu, Sobral, Narandiba and Rio Formoso, with a total of 1,865 kilometers of transmission lines and an average concession term of 25 years.
Iberdrola, through its subsidiary in Brazil, Neoenergia, will hold a 50% stake in the company, valued at 1.200 million Brazilian reais (228 million euros), and will participate together with GIC in future bids for electricity transmission assets in Brazil.
With the closing of this transaction, Neoenergia will no longer consolidate for accounting purposes the debt of the operating assets, considered within the perimeter of the transaction, which in turn is part of the non-core asset rotation program implemented by the company, which it has already completed 100% to support Iberdrola’s record investment plan of 47,000 million euros.