Iberdrola, through its Brazilian affiliate Neoenergia, has signed a strategic agreement with GIC, a Singaporean sovereign wealth fund, for the development of transmission networks in Brazil for BRL2.4bn (US$476m). Both companies will co-invest in operational assets (Jalapão, Santa Luzia, Dourados, Atibaia, Biguaçu, Sobral, Narandiba and Río Formoso), which represents a total of 1,865 km of transmission lines with an average concession term of 25 years. Iberdrola, through Neoenergia, will have a 50% stake in the company, valued at BRL1.2bn (US$238m).
In addition, the partners have signed a framework agreement for the joint participation in future tenders for power transmission assets in Brazil, including the auction scheduled for 30 June 2023. GIC becomes a preferred partner for assets under construction and upcoming auctions. The alliance includes the right to acquire a 50% stake in other assets under construction and operation (Itabapoana, Guanabara, Vale do Itajaí, Lagoa dos Patos, Morro do Chapéu, Estreito, Alto do Parnaíba, Paraíso and Potiguar Sul), which encompass 6,279 km.