Transmission auction maintains discounts – but some raise caution
The energy transmission concessions auction held on Friday at B3 seemed to take place in a parallel world to the chaos that has reigned in the financial market since the elections. Despite the stock market implosion and the jump in long-term interest rates, all eight projects - with a total estimated capex of R$ 8.9 billion - received bids from several companies, and the average discount in the proposals was 50%, close…
An energy transmission concessions auction took place on Friday at B3, with all eight projects receiving bids from various companies despite market volatility since the elections. The projects, estimated to cost R$ 8.9 billion, had an average discount of 50% in the proposals. Spanish companies, including Neoenergia from Iberdrola, Cymi, Celeo Redes, Cox, and EDP from Portugal, were among the winners, securing a total of seven projects.
The auction's results suggest that winning companies may have factored in an expected normalization of the debt market in one or two years. The transmission projects offer stable, inflation-indexed revenue, but their returns are under pressure due to high discounts.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
