Sterlite Power has signed a pact with V2i Transmissao de Energia S.A., funded by Vinci Energia FIP – IE, for sale of its Arcoverde Project for $35.5 million, the company said in a statement on Wednesday. The Project was Sterlite’s first operationa…

MUMBAI: Sterlite Power has signed an agreement to sell a transmission line project in Brazil to Vinci Energia FIP – IE (V2i Transmissão de Energia S.A.) for $35.5 million, the company said in a statement on Wednesday.

The Arcoverde Project, which was Sterlite’s first operational asset in Brazil, was built to expand the flow of renewable energy in the countryside region of Pernambuco.

“Through this transaction, we monetise our first asset and thereby attract equity capital to reinvest in our portfolio of greenfield projects,” Sterlite Power CEO Pratik Agarwal was quoted as saying in the statement.

Sterlite Power bagged the Arcoverde Project in April 2017 and commissioned it in May this year, 28 months ahead of the deadline set by the Brazilian electricity regulatory agency.

“For this transaction, V2i Transmissao de Energia S.A., funded by Vinci Energia FIP – IE will pay to Sterlite Power the amount of $35.5 million (base date: October 31, 2019), subject to positive or negative adjustment, resulting, among others, of variation between net indebtedness and capital between the base date and the closing date, as well as other adjustments after closing,” the statement said.

The transaction is subject to compliance with certain preceding conditions, such as the approval of the Brazilian

regulator.
News Source: The Economic Times