CDPQ to acquire Integração Transmissora de Energia for $108.5M

CPE News

CPE News (11.1.2023) – CDPQ has entered into an agreement with Equatorial Energia S.A. for the acquisition of Integração Transmissora de Energia S.A. (Intesa), a strategic power transmission network spanning 695 kilometres in the states of Tocantins and Goiás, in central Brazil.

The transaction, valued at up to CAD $108.5 million (R$396.4 million), marks CDPQ’s second power transmission investment in Latin America in the past 18 months, following the acquisition of power lines extending nearly 1,100 kilometres in Brazil and Uruguay, which are now part of Verene Energia, an energy platform founded by CDPQ.

Upon closing of the transaction, Intesa will be integrated into Verene Energia.

The transaction is expected to close by the end of December 2023, subject to customary closing conditions and relevant consents and approval.

Image by Michael Schwarzenberger from Pixabay

News Release

CDPQ acquires a strategic 695-km power transmission network in Brazil

Intesa will be integrated into Verene Energia, CDPQ’s Latin American power transmission platform
A growing number of renewable projects are creating new opportunities for power transmission in Brazil

MONTRÉAL, Nov. 1, 2023 /CNW/ – CDPQ, a global investment group, today announced an agreement with Equatorial Energia S. A. for the acquisition of Integração Transmissora de Energia S. A. (Intesa), a strategic power transmission network spanning 695 kilometres in the states of Tocantins and Goiás, in central Brazil.

The transaction, valued at up to CAD $108.5 million (R$396.4 million), marks CDPQ’s second power transmission investment in Latin America in the past 18 months, following the acquisition of power lines extending nearly 1,100 kilometres in Brazil and Uruguay, which are now part of Verene Energia, an energy platform founded by CDPQ.

Equipped with two substations, Intesa’s transmission network extends across central Brazil, where significant renewable electricity output is generated for consumption in the south and south-east of the country. Intesa has a strong design and operating track record and is well positioned to continue playing a critical role in meeting Brazil’s decarbonization needs.

Emmanuel Jaclot, CDPQ’s Executive Vice-President and Head of Infrastructure, said: “By enabling and accelerating the delivery of renewable energy, electricity transmission assets like Intesa act as real catalysts for the energy transition. This is why they are at the heart of our Latin American investment strategy, particularly in Brazil, as the country aims to connect a growing number of low-carbon energy projects.”

Financial close is expected by the end of December 2023, subject to customary closing conditions and relevant consents and approval.

ABOUT CDPQ

At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2023, CDPQ’s net assets totalled CAD 424 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.

SOURCE CDPQ

For further information: CONRAD HARRINGTON, Senior Director – International Media Relations, + 1 514 847-5493, charrington@cdpq.com