Companies

Sterlite Power inks pact to sell Arcoverde project to Vinci Energia FIP – IE

Our Bureau New Delhi | Updated on November 06, 2019

Power transmission company Sterlite Power will sell off its power transmission asset in Brazil for $35 million to Vinci Energia FIP – IE.

“Arcoverde” was a project won by Sterlite Power in April 2017 was held through (V2i Transmissao de Energia S.A.) of Arcoverde Transmissao de Energia SA, a Special Purpose Vehicle, which was commssioned in May 2019, the company said in a statement.

For this transaction, V2i Transmissao de Energia S.A., funded by Vinci Energia FIP - IE will pay Sterlite Power $35 million 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 Brazilian electricity regulator ANEEL, among others.

Pratik Agarwal, CEO ,Sterlite Power, said: “Through this transaction we monetize our first asset and thereby attract equity capital to reinvest in our portfolio of greenfield projects”. Sterlite Power is also a sponsor of IndiGrid, India’s first power sector InvIT, which is eying power transmission assets worth Rs 8,000 crore.

A month back Sterlite Power raised funds from its freshly issued infrastructure debentures rated by Fitch Ratings as AAA for the Arcoverde Project. 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 company said.

Published on November 06, 2019

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