GEB completes Brazilian transmission acquisition
Grupo Energía Bogotá (GEB) has completed its acquisition of five transmission lines in Brazil.
The group acquired the concessions through its subsidiaries Argo Energia and Gebbras from a Brookfield-owned fund, Brasil Energia FIP, for R$4.3 billion ($332.9 million) after entering an agreement earlier this year (PFR, 8/1).
The projects are all operational and comprise a total of 2,416 km of 550 kV and 230 kV transmission lines and 20 substations in the states of Bahia, Ceará, Minas Gerais, Paraíba, Piauí and Rio Grande do Norte. The concessions are:
Esperanza Transmissora de Energia
Odoyá Transmissora de Energia
Transmissora José Maria de Macedo de Eletricidade
Giovanni Sanguinetti Transmissora de Energia
Veredas Transmissora de Energia
The ownership of the projects will be divided as follows:
Argo Energia - 62.5%
Gebbras - 37.5%
With this acquisition, Argo Energia owns about 4,159km of transmission lines in Brazil, adding to the 1,686 km the company manages in Peru and the 1,729 km it owns in Chile. Argo is a joint venture between GEB and Spain’s Redeia (50:50) following a €200 million ($208 million) investment from the Spanish transmission company.
In addition, GEB entered a five-year credit agreement for up to $509 million, with Scotiabank and Sumitomo Mitsui Banking Corporation acting as lead agents on the transaction to support the acquisition and other investment plans.
Other lenders on the transaction included Bank of China (Panama), Citibank and Banco de Sabadell (Miami). UMB Bank acted as administrative agent.
This is Argo’s second transmission acquisition this year. The company purchased Brazilian transmission platform Rialma Transmissora de Energia III in February (PFR, 2/4).