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CDPQ to acquire Latin American power transmission assets

Europe's Terna Group has agreed to sell a portfolio of power transmission assets in Brazil, Peru and Uruguay to Caisse de dépôt et placement du Québec.

Europe’s Terna Group has agreed to sell a portfolio of power transmission assets in Brazil, Peru and Uruguay to Caisse de dépôt et placement du Québec. The deal is valued at more than €265 million ($279 million). It marks CDPQ’s creation of a new platform dedicated to the transmission of electricity in Latin America.

PRESS RELEASE

ROME and MONTRÉAL, April 29, 2022 /PRNewswire/ – Terna S.p.A., Terna Plus S.r.l. and Terna Chile S.p.A. (collectively “Terna Group”) today signed an agreement with CDPQ, a global investment group, for the sale of 100% of Terna Group’s portfolio of power transmission assets in Brazil, Peru and Uruguay, for an equity value of over 265 million euros.

Terna’s recently constructed, state-of-the-art transmission network in Latin America extends approximately 1,200 kilometres in three countries, Brazil, Peru and Uruguay. Thanks to significant investments in the region over the past five years and leveraging of its core expertise, Terna Group has contributed to the sustainable development of resilient and fully digitalized infrastructure, with the involvement of 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 Terna International Operations.

The acquisition of these key assets will enable CDPQ to enter the Latin American energy transmission market, with a strong management team in place capable of pursuing growth opportunities, and in a manner consistent with its climate strategy and its objective of achieving 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 at 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.

ABOUT TERNA
The Terna Group is one of the leading European and global electricity transmission operators. It operates the high-voltage national transmission grid with about 75,000 km of lines, around 900 electrical substations throughout the Italian territory and 26 interconnections with foreign Countries. Its mission is to guarantee 24 hours a day, 365 days a year, the secure operation, quality and efficiency of the Italian electricity system and ensure equal access conditions for all market operators. A centre of excellence made up of over 5,100 professionals, Terna plays a guiding role in the energy transition process towards complete decarbonisation and full integration of energy from renewable sources into the grid. For more information www.terna.it

ABOUT CDPQ

At Caisse de dépôt et placement du Québec (CDPQ), we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public retirement 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 December 31, 2021, CDPQ’s net assets totalled CAD 419.8 billion. For more information, visit cdpq.com, follow us on Twitter or consult our Facebook or LinkedIn pages.