Actis is adding a 135km electricity transmission line to its Brazilian electricity transmission platform Skyline.
The infrastructure manager’s Actis Long Life Infrastructure Fund 2 (ALLIF2) is acquiring the transmission line in Southern Brazil from EDP Brasil for an unspecified amount.
The transmission line operates under a 30-year concession, with 22 years currently remaining.
The latest deal is the fourth investment for ALLIF2 portfolio company Skyline, following closely on two previous assets added to the platform in the second quarter of the year.
Adrian Mucalov, managing director and head of long-life infrastructure at Actis, said: “Our team in Latin America is working hard to capitalise on the opportunities present in the Brazilian electricity transmission sector, which we believe benefits from robust contractual frameworks and an impressive track record for private investors.
“Investments in transmission networks play an important part in supporting the build-out of power generation, in particular renewables, and are key to creating resilient energy systems.”
Davi Carvalho Mota, managing director, long-life infrastructure at Actis, said: “We believe the continued growth of Skyline brings benefits for our investors, so it’s great to add to the platform with this transmission line asset. The asset further diversifies the platform and will be integrated into a business with meaningful operational synergies and efficiencies.
“We think the electricity transmission sector is among the low-risk segments of the power value chain and, with favourable market dynamics, we’re confident it will provide compelling returns for investors.”
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