Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) has agreed to buy Terna Group’s energy transmission community in Latin America for greater than $278.7m (€265m).
As per the deal, the Italian transmission system operator (TSO) will promote its community in Brazil, Peru and Uruguay, which extends almost 1,200kms.
Terna expects the transaction to end in a capital acquire of greater than €60m.
The divestment of belongings is a part of Terna’s to streamline worldwide footprint as per its up to date 2021-2025 Industrial Plan.
Terna head of Worldwide Operations Giacomo Donnini stated: “Terna will now refocus its worldwide footprint in low-risk markets with enticing development potential, as we introduced in our up to date 2021-2025 Industrial Plan.”As part of this plan, Terna lately introduced a $11bn (€10bn) funding in Italy’s power transition, power independence and decarbonisation efforts.
The deal marks the foray of CDPQ into the Latin American power transmission market.
CDPQ famous that the deal is a part of its local weather technique to perform a 60% discount within the carbon depth of its portfolio by 2030.
CDPQ Head of Infrastructure Emmanuel Jaclot stated: “With this primary funding in energy transmission in Brazil, Peru and Uruguay, we’re laying the muse of a brand new CDPQ platform devoted to energy transmission in Latin America, with an goal of turning into a key participant on this important sector of the financial system.
“We’re decided to drive the growth of networks connecting new renewable power tasks to shoppers all through the area, an goal in keeping with each our Latin American and portfolio decarbonation methods.”
In December 2020, CDPQ divested its stake in three Quebec wind farms to Canadian renewable power firm Boralex.