Iberdrola completes the expansion of its alliance with GIC in transmission networks in Brazil

Iberdrola, through its subsidiary Neoenergia, has completed the transaction to expand its strategic alliance with GIC, Singapore’s sovereign wealth fund, in the electricity transmission network business in Brazil. The transaction adds seven Neoenergia transmission assets to the joint platform, strengthening its presence across key regions of the country.

The assets included in the transaction are Neoenergia Guanabara, located in Rio de Janeiro; Neoenergia Vale do Itajaí, located in Santa Catarina; Potiguar Sul, located in Rio Grande do Norte; Neoenergia Morro do Chapéu, located in Bahia; Neoenergia Estreito, located in Minas Gerais; Neoenergia Alto Paranaíba, located in São Paulo and Minas Gerais; and Neoenergia Paraíso, located in Mato Grosso do Sul.

Upon completion of the transaction, Neoenergia increases its stake in Neoenergia Transmissão from 50% to 51%, retaining control of the platform, while the remaining 49% is held by GIC. Neoenergia Transmissão now comprises 16 assets and 6,710 kilometres of transmission lines, with an asset value of around BRL 25.5 billion (approximately €4.25 billion) and estimated annual regulated revenues of approximately BRL 1.9 billion (€320 million). The portfolio combines scale, geographical diversification and long-term regulated revenues, positioning the platform among Brazil’s largest privately operated electricity transmission businesses.

This is the third transaction completed under the strategic partnership between Neoenergia and GIC, which began in 2023 with the creation of Neoenergia Transmissão. The partnership strengthens both companies’ ability to continue supporting the expansion and modernisation of Brazil’s electricity infrastructure, underpinned by a long-term vision, financial discipline and operational excellence.

Iberdrola’s firm commitment to networks business around the world

This transaction reinforces the Iberdrola Group’s strong commitment to the electricity transmission and distribution networks business worldwide. The company plans to invest nearly €30 billion in this area through 2028, with the United Kingdom, the United States and Brazil as its main investment destinations.

Iberdrola currently has a Regulated Asset Base (RAB) of €55 billion and expects to continue growing to exceed 90 billion by 2031 in countries where investment in this segment is encouraged and supported by clear and stable regulatory frameworks, such as the United Kingdom, the United States and Brazil.