EDP sells three transmission ventures | EDP Brasil

EDP, a company that operates throughout the electricity sector's value chain, signed a contract with a company held by Actis Assessoria de Investimentos LTDA for the sale of 100% of the capital of three of its energy transmission projects: EDP Transmissão S.A. (Lot 24), EDP Maranhão I S.A. (Lot 7) and EDP Maranhão II S.A. (Lot 11). The assets, which total 439 kilometers in length, have an annual allowable revenue (RAP) of R$131 million and an enterprise value of R$1.32 billion.

The agreement took place through a competitive process and is in line with the Company's strategy of asset rotation in the Transmission segment, in which the Company is recognized for its capacity to carry out works within the expected budget and with early delivery. The transaction must still be approved by the Administrative Council for Economic Defense (CADE), the National Agency of Electrical Energy (ANEEL), in addition to Banco do Nordeste do Brasil and debenture holders, as applicable.

“The completion of today's transaction allows EDP to crystallize value with the rotation of these transmission assets, fulfilling a priority goal of the strategy defined for the year 2021. With this sale and the purchase of CELG-T, which took place on the 14th, we increased our presence in the Transmission business, which presents a lower sectorial risk, and created additional value for our shareholders.” says João Marques da Cruz, CEO of EDP in Brazil.

Transmission Investments

On the 14th, EDP acquired 100% of the shares of Celg Transmissão SA (Celg-T), in an auction organized by the National Electric Energy Agency (Aneel). The purchase was made for R$ 1.98 billion reais. With the operation, EDP estimates an additional annual allowable revenue (RAP) of R$ 223 million in the 2021/2022 cycle, through the acquisition of 756 kilometers of transmission networks and 14 substations of the state-owned transmission company in Goiás.

With the sale of lots 7, 11 and 24 and the acquisition of Celg T, EDP now has eight transmission projects in its portfolio which, when operational, will total 2,241 km of lines in extension and approximately R$ 702 million in RAP. Since 2017, the Company has invested R$4.1 billion in Transmission works and projects acquired at ANEEL auctions or in the secondary market. This represents 80% of its total CAPEX execution in the states of Santa Catarina, Rio Grande do Sul, São Paulo, Minas Gerais, Maranhão and Espírito Santo, Acre and Rondônia.

About EDP in Brazil

Present in the country for over 20 years, EDP is one of the largest private companies in the electricity sector operating throughout the value chain. With more than 10,000 direct and outsourced employees, the Company has businesses in Generation, Transmission, and Energy Services Solutions aimed at the B2B market, such as solar generation, electric mobility and the free energy market. In Distribution, it serves about 3.5 million customers in São Paulo and Espírito Santo, in addition to being the main shareholder of Celesc, in Santa Catarina. In 2020, it was elected the most innovative company in the electricity sector by the Valor Inovação ranking, of the Valor Econômico newspaper, and is a reference in ESG, being on the B3 Corporate Sustainability Index (ISE) for 15 consecutive years.