GIC closes its strategic alliance with Iberdrola to expand transmission networks in Brazil for 456 million euros

Iberdrola and GIC, Singapore's sovereign wealth fund and one of the world's leading institutional investors, have closed a strategic agreement to develop transmission grids in Brazil for 2.4 billion Brazilian reals (EUR 456 million). 

The deal, which was announced at the end of April, has already been approved by the National Electricity Agency (ANEEL) and the Administrative Council for Economic Defence (CADE). 

Both companies will co-invest in operational transmission assets (Jalapão, Santa Luzia, Dourados, Atibaia, Biguaçu, Sobral, Narandiba and Rio Formoso), with a total of 1,865 km of transmission lines, with an average concession term of 25 years. Iberdrola, through its subsidiary in Brazil, Neoenergia, will hold a 50% stake in the company, valued at 1.2 billion Brazilian reals -228 million euros-. 

Iberdrola and GIC have also signed a framework agreement to jointly participate in future tenders 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. 

GIC is a leading global investment firm established in 1981 to secure Singapore's financial future. As the manager of Singapore's foreign exchange reserves, GIC takes a disciplined, long-term investment approach and is committed to investing in critical solutions to accelerate the energy transition. 

This transaction is part of Iberdrola's 100% non-core asset rotation programme to support Iberdrola's record €47 billion investment plan.