Sterlite Power Signs Agreement To Sell Arcoverde Project In Brazil
Sterlite Power Ltd. has decided to sell its first power transmission asset operating in Brazil—the Arcoverde Project.
It has signed an sale agreement with Vinci Energia FIP IE of Arcoverde Transmissao de Energia SA, a special purpose entity power transmission company and holder of the Arcoverde Project.
The project was won by Sterlite Power in April 2017 and commissioned in May 2019, 28 months ahead of the deadline set by ANEEL (Brazilian Electricity Regulatory Agency). It is responsible for expanding the flow of renewable energy in the countryside region of Pernambuco.
V2i Transmissao de Energia S.A., funded by Vinci Energia FIP IE will pay Sterlite Power $35.5 million, subject to positive or negative adjustment, resulting from 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 the transaction is subject to compliance with certain preceding conditions, such as the approval of ANEEL, it said.
“Through this transaction we monetise our first asset and thereby attract equity capital to reinvest in our portfolio of greenfield projects,” said Pratik Agarwal, chief executive officer of Sterlite Power.
According to Sterlite Brazil CEO Rui Chammas, the Arcoverde Project was delivered 28 months ahead of schedule and is consistent with the company's business model—generating growth capital by attracting investments for its developed assets.