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Terna sells its electricity transmission activities in Latin America to CDPQ for more than 265 million euros

By on April 29, 2022 0
  • Terna refocuses its international footprint according to its updated 2021-2025 industrial plan
  • CDPQ makes its first investment in electricity transmission in Latin America with the purchase of the Terna transmission network in Brazil, Peru and Uruguay
  • This acquisition marks the creation of a new CDPQ platform dedicated to the transmission of electricity in Latin America

ROME and MONTREAL, April 29, 2022 /PRNewswire/ – Terna SpA, Terna Plus Srl and Terna Chile SpA (collectively “Terna Group”) today signed an agreement with CDPQ, a global investment group, for the sale of 100% of the portfolio of assets of transmission of electricity from the Terna Group in Brazil, Peru and Uruguayfor an equity value of more than 265 million euros.

The state-of-the-art transmission network recently built by Terna in Latin America spans approximately 1,200 kilometers in three countries, Brazil, Peru and Uruguay. Through significant investments in the region over the past five years and building on its core expertise, Terna Group has contributed to the sustainable development of resilient and fully digitized infrastructure, with the involvement of local communities. The transaction will allow Terna to record a capital gain of more than 60 million euros.

“Terna will now refocus its international footprint on low-risk markets with attractive growth potential, as announced in our updated 2021-2025 industry plan,” said Giacomo Donninihead of international operations at Terna.

The acquisition of these key assets will allow CDPQ to enter the Latin American energy transportation market, with a strong management team in place capable of pursuing growth opportunities, in a manner consistent with its climate strategy and its objective to achieve a 60% reduction in the carbon intensity of its portfolio by 2030.

“With this first investment in power transmission in Brazil, Peru and Uruguaywe are laying the foundations of a new CDPQ platform dedicated to the transport of energy in Latin America, with the aim of becoming a key player in this critical sector of the economy. We are committed to driving the expansion of networks connecting new renewable energy projects to customers across the region, a goal that fits into both our decarbonization strategies in Latin America and our portfolio,” said Emmanuel Jaclot, executive vice-president and head of infrastructure at the CDPQ.

Completion of the deal is expected to occur in several stages, mostly in the second half of 2022, subject to certain customary conditions being met. Terna Group was assisted by Santander Corporate & Investment Banking as financial advisor and by the international law firm Curtis, Mallet-Prevost, Colt & Mosle as legal advisor. Pinheiro Neto Advogados acted as legal counsel to the CDPQ.

ABOUT TERNA

the Terna Group is one of the main European and global electricity transmission operators. It operates the national high voltage transmission network with around 75,000 km of lines, around 900 electrical substations throughout Italy and 26 interconnections with foreign countries. Its mission is to guarantee 24 hours a day, 365 days a year, the safe operation, quality and efficiency of the Italian electricity system and to ensure equal access conditions for all market operators. A center of excellence made up of more than 5,100 professionals, Terna plays a guiding role in the energy transition process towards full decarbonization and full integration of energy from renewable sources into the grid.

For more information www.terna.it

ABOUT CDPQ

At Caisse de dépôt et placement du Québec (CDPQ), we invest constructively to generate long-term sustainable returns. As a global investment group managing funds for public pension and insurance schemes, we work alongside our partners to build companies that drive performance and progress. We are active in the main financial markets, private equity, infrastructure, real estate and private debt. As of December 31, 2021, the Caisse’s net assets totaled $4190.8 billion. For more information, visit cdpq.comfollow us on Twitter or see our Facebook or LinkedIn pages.

SOURCE Caisse de depot et placement du Québec