Sterlite Power, a leading developer of power transmission infrastructure in India and Brazil, and Vinci Energia (VIGT11), through Vinci Infraestrutura Gestora de Recursos LTDA, announced the formalization of the commitment of first acquisition of issuance of debentures convertible into shares for the Vineyards Project that is in the final phase of implementation.
The transaction under this relevant fact foresees R$ 149 million in debentures aimed at developing projects in Sterlite Power’s portfolio. The investment amount can be converted into shares with an 80% purchase option when the Project is complete in this year. The remaining 20% can be purchased within 190 days.
With an initial investment of R$ 395 million, the Vineyards Project includes the construction of 112 km of transmission lines, implementation of two new 496 MVA substations, and the expansion of four substations in the regions of Garibaldi, Bento Gonçalves, Lajeado, and Bagé. A previous debenture issue was held in 2019 when R$250 million was raised. The contract also gives way for the parties to negotiate for more projects in Sterlite Power’s portfolio.
“This partnership is an important recognition for our operations in Brazil since last four years and our long-term plan in the country. We understand that Vinci has identified the quality of our assets for the composition of its infrastructure investment fund, and we are happy to continue together on this journey,” says Marco Tanure, CFO of Sterlite Power Brazil.
This is the second transaction between the two companies. The Arcoverde Project, completed in 2019, with 129 km in transmission lines, three substations (a new one) in the Region of Pernambuco, was acquired by the fund in 2020.
“The partnership involving Vineyards represents an important acquisition for Vinci Energia FIP-IE (VIGT11), which focuses on the electricity sector. This will be the seventh asset acquired by the fund and, currently, will represent a relevant portion of the fund’s portfolio. Vineyards reinforces the investment strategy of VIGT11 in high quality assets and high predictability of cash generation”, says José Guilherme Cruz Souza, partner and head of Infrastructure at Vinci Partners.”