iberdrola Three years ago, one leg of the 2023-2025 strategic plan was completed. The electric company’s roadmap considered: Sale of assets worth 7,500 million euros to support the programmed record investments of 47,000 million. A target already achieved with several asset rotation operations in Brazil where a new alliance was added.
Iberdrola signed an alliance with the United States. Singapore state wealth fund, giant GIC, to grow the electric transportation networks business in Brazil through a joint venture. The operation consists of three parts: the sale of 50% of the Spanish power company’s assets in Brazil, the option to buy 50% of the other grids in the country, and the commitment to participate in future auctions together. The alliance was announced during the official visit of Brazilian President Luiz Inácio ‘Lula’ da Silva to Spain.
three-legged alliance
ThisEqually owned company by Iberdrola and GIC It is worth 2,400 million Brazilian reals (430 million euros), and through this vehicle both companies generate an annual return of 77 million euros, with a total of 1,865 km of transmission lines and an average concession period of 25 years. Iberdrola transfers half of these assets in an operation where it realizes 13 times the gross operating profit (meatballs) of the assets.
The alliance includes: GIC’s right to a 50% stake in other assets Under construction and operation covering 6,279 km (Itabapoana, Guanabara, Vale do Itajaí, Lagoa dos Patos, Morro do Chapeu, Estreito, Alto do Parnaíba, Paraíso and Potiguar Sul). Iberdrola and GIC signed a framework agreement. jointly participate in future tenders for transport assets Electricity in Brazil, including the auction scheduled for 30 June 2023.
“This transaction is part of a non-mandatory asset rotation program that has already been 100% fulfilled to support Iberdrola’s record investment plan of 47,000 million euros,” Iberdrola said in a communication to CNMV. After Iberdrola’s operation to sell a large portion of its gas facilities in Mexico to a state company for $6,000 million (approximately €5,500 million), it was very close to meeting its €7 billion 500 million asset sale target.