Infrastructure investment firm Actis has acquired 743km of transmission lines in Brazil from the local subsidiary of EDP Group.
Actis said the acquisition of the asset from EDP Brasil marks the launch of a dedicated transmission platform in Brazil for Actis platform and aligns with the firm’s strategy of investing in long-life infrastructure.
Adrian Mucalov, partner and head of long-life infrastructure at Actis, said: “Brazil’s transmission sector represents an excellent investment opportunity: fully operational assets, providing essential service infrastructure, with world class regulation, delivering consistent and competitive cash flows for our investors.
“The asset Actis is acquiring is net zero aligned and critical to meeting the demand for grid expansion and modernisation required for electrification and renewables deployment as part of the energy transition, as well as the general economic growth of the country.”
The latest investment follows the global infrastructure manager’s previous acquisition in 2021 when it bought HRZ Transmissoras, another transmission platform in the country.
“What’s particularly exciting from a value-creation perspective is that we already hold Brazilian transmission assets through HRZ, so we can leverage our existing experience and learnings in this market to deliver value-add on everything from contractor management to community engagement and sustainability,” Mucalov added.
Nicolas Escallon, partner in the energy infrastructure business at Actis, said: “Actis has a very strong track record of investing in the Latin American energy sector, and notably in Brazil, across energy generation, transmission and distribution.
“This latest investment adds a further string to our bow and perfectly illustrates how we’re using our experience to grow successful energy businesses across the region. Brazil in particular is showing great ambition on the energy transition and we will continue to be on the lookout for further opportunities to invest in the country’s energy sector.”
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