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State Grid of China plans to raise funds and stakes in Brazil

State Grid of China plans to raise BRL 3.2bn (US$1bn) from the sale of local notes to finance the construction of power transmission projects. The company is in charge of building a 2,500 km-long power transmission line worth BRL 8.7bn (US$2.8bn) to connect the 11.3 GW Belo Monte dam in northern Brazil to the south-eastern cities.



In addition, State Grid of China has decided to offer BRL 25.51 (US$8.35) per share to buy the remainder of Brazilian power company CPFL Energia. In 2016, the company acquired a 23% stake in CPFL from Camargo Correa, a further 29% from pension fund Previ and 15% from Bonaire Participações (transactions completed in January 2017). State Grid now plans to complete the acquisition of minority shares in CFPL and to remove the company from the NYSEX.



CPFL accounts for 13% of the national distribution market in Brazil, supplying power to 7.8 million customers in 571 municipalities in the states of São Paulo, Rio Grande do Sul, Parana and Minas Gerais through eight distribution company. The group is currently acquiring AES Sul, which would raise its market share in the distribution market to 14.3%, providing energy to 382 of the 497 municipalities of Rio Grande do Sul.