Singapore’s GIC has formed a strategic partnership with Spanish utility company, Iberdrola, to invest in a portfolio of seven projects in Brazil for a total around BRL2.42bn (€412m).
The agreement with Iberdrola’s subsidiary Neoenergia involves projects in seven states – Santa Catarina, São Paulo, Minas Gerais, Rio de Janeiro, Mato Grosso do Sul, Bahia and Rio Grande do Norte.
This is the third transaction completed under the partnership between Neoenergia and GIC, which led to the creation of Neoenergia Transmissão, a joint venture focused on the transmission network infrastructure business in 2023.
Neoenergia Transmissão is now one of the five largest electricity transmission companies in the country, with a total of 16 projects across 12 states, comprising approximately 6,710km of power lines and a capital asset value of around BRL25bn.
Neoenergia also has a further 1,000km of power lines in the country, which, when added to those included in this transaction, bring the total length of its transmission networks to almost 8,000km.
The deal confirms Iberdrola’s commitment to Brazil, following its recent acquisition of the remaining shares in Neoenergia for BRL5.82bn, and is in line with its strategy of investing in regulated electricity networks in markets with stable and predictable regulatory frames, according to the company.
The Spanish group invested 30bn Brazilian reais in the past year, making it the largest investor in the electricity sector in Brazil. Currently, it owns assets valued at around BRL120bn in Brazil, ranking it as the country’s leading electricity distribution group.
Through Neoenergia, Iberdrola operates in 18 Brazilian states and the Federal District running electricity generation, transmission and distribution assets, and 3,600MW of renewable generation, mainly hydroelectric.
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