Terna Sells Latin American Power Transmission Portfolio to CDPQ Group in Deal Worth €265 Million

Rome-based Terna has signed an agreement with global investment group CDPQ for the sale of Terna Group's entire power transmission asset portfolio in Brazil, Peru, and Uruguay, for equity valued at over €265 million.

Terna's recently completed, new-age transmission network in Latin America runs about 1,200 KM across the three countries of Brazil, Peru, and Uruguay. Owing to significant investments in the region over the last half-decade and leveraging of its core expertise, Terna Group has contributed to the sustainable development of resilient and fully digitalized infrastructure, while involving local communities. The transaction will allow Terna to record a capital gain of over 60 million euros.

"Terna will now refocus its international footprint in low-risk markets with attractive growth potential, as we announced in our updated 2021-2025 Industrial Plan", said Giacomo Donnini, Head of International Operations, Terna.

This imperative acquisition will enable CDPQ to enter the Latin American energy transmission market, with a solid management team capable of pursuing growth opportunities, and in line with its climate strategy and its aim of a 60% reduction in the carbon intensity of its portfolio by 2030.

"With this first investment in power transmission in Brazil, Peru, and Uruguay, we are laying the foundation of a new CDPQ platform dedicated to power transmission in Latin America, with an objective of becoming a key player in this critical sector of the economy. We are determined to drive the expansion of networks connecting new renewable energy projects to clients throughout the region, an objective in line with both our Latin American and portfolio decarbonation strategies," said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure, CDPQ.

The closing of the deal is planned to occur in multiple steps, for the most part in the second half of 2022, subject to the fulfillment of certain customary conditions. Terna Group was assisted by Santander Corporate & Investment Banking as financial advisor and by the international law firm Curtis, Mallet-Prevost, Colt & Mosle as legal advisor. Pinheiro Neto Advogados served as legal advisor to CDPQ.