Iberdrola closes the expansion of its alliance with GIC in electric transport networks in Brazil

Spanish electricity company Iberdrola announced it has completed the third phase of its partnership with Singapore sovereign wealth fund GIC to jointly manage transmission assets in Brazil. The Spanish multinational's subsidiary, Neoenergia Transmissão, will now have 16 assets and 6,720 kilometers of transmission lines worth around 25.5 billion reals (4.342 million euros) with annual regulated revenues of about 1.9 billion reals.

The third phase, announced in April, added seven new assets to the existing nine, paid for with 2.418 million reals. The move strengthens Neoenergia Transmissão's presence in strategic regions of Brazil, including São Paulo, Rio de Janeiro, Minas Gerais, Santa Catarina, Rio Grande do Norte, Bahia, and Mato Grosso do Sul. As a result of the transaction, Iberdrola now owns 51% of Neoenergia Transmissão, maintaining control of the platform, while GIC retains the remaining 49%.

The partnership was established in 2023 when GIC acquired half of a first tranche of transmission assets from Iberdrola in Brazil. In addition to the shared assets, Neoenergia has another 1,000 kilometers of transmission lines in Brazil. The Spanish company is one of the largest electricity providers in Brazil, operating in 18 of the 27 states of the country through six regional distributors, making it the largest distributor and serving 16.9 million customers via six regional distributors.

Iberdrola owns 4.2 gigawatts of generation capacity, 87% of which comes from renewable sources. In April, Iberdrola acquired a 14.21% stake in Neoenergia through a Public Offer of Acquisition, allowing it to increase its ownership to 98%.