Sterlite Power announces the signing of the sale agreement of Arcoverde Transmissao de Energia S.A. with Vinci Energia FIP - IE
Sterlite Power reinforces its business model and signs the sale agreement for its first asset operating in Brazil - the Arcoverde Project, which is responsible for expanding the flow of renewable energy in the countryside region of Pernambuco.
New Delhi , November 6th, 2019 - Sterlite Power, the leading global developer of power transmission, announces the signing of the sale agreement with Vinci Energia FIP – IE (V2i Transmissão de Energia S.A.) of Arcoverde Transmissao de Energia S.A., SPE power transmission company and holder of the Arcoverde Project.
The project named “Arcoverde” was won by Sterlite Power in April 2017 and commissioned in May 2019, 28 months ahead of the deadline set by the Brazilian Electricity Regulatory Authority - ANEEL (August 2021). For this transaction, V2i Transmissao de Energia S.A., funded by Vinci Energia FIP - IE will pay to Sterlite Power the amount of US$ 35.5 million (R$ 141 million, base date: October 31, 2019), subject to positive or negative adjustment, resulting, among others, of variation between net indebtedness and capital between the base date and the closing date, as well as other adjustments after closing. The conclusion and effectiveness of that transaction is subject to compliance with certain preceding conditions, such as the approval of ANEEL, among others.
Pratik Agarwal, Group CEO of Sterlite Power said, “We are proud to have delivered our first successful project to support the Brazilian National Grid. Through this transaction we monetize our first asset and thereby attract equity capital to reinvest in our portfolio of greenfield projects”.
Rui Chammas, Sterlite Power Brazil CEO, said, “The Arcoverde project is an example of our operational excellence. This project was delivered 28 months ahead of schedule and is consistent with our business model, where we generate growth capital by attracting investments for our developed assets.”
The construction of the Arcoverde Project increased the flow of renewable energies to the Pernambuco region with the construction of 129 km of power transmission lines, the installation of a new substation (Arcoverde II) and the expansion of two other substations (Garanhuns II and Caetés II) existing in the region. The foreseen investment by ANEEL to the project was US$ 41 million (R$ 164 million), its concession ends in 2047 and currently has RAP of US$ 6.15 million (R$ 27 million).
About Sterlite Power
Sterlite Power is a leading global developer of power transmission assets with projects in India and Brazil. Operating in Brazil since 2017, the company has won 10 power transmission projects in 11 states (Bahia, Ceará, Goiás, Pernambuco, Pará, Paraíba, Minas Gerais, Rio Grande do Norte, Rio Grande do Sul, Sergipe and Tocantins), totalling 29 transmission lines, 34 substations, 4,424 km in length, CAPEX of over BRL 7.7 billion and annual allowed revenue (RAP) of more than BRL 728 million. Sterlite Power also offers solutions for updating and strengthening existing transmission networks and is a market leader in power conductors and EHV cables. The company has set new benchmarks in the industry through cutting-edge technologies and operational management that seeks excellence in asset generation, in addition to innovative financing. Go to www.sterlitepower.com/br to learn more.
Sterlite Power: firstname.lastname@example.org