Singapore markets open in 7 hours 37 minutes
  • Straits Times Index

    3,092.11
    -6.14 (-0.20%)
     
  • S&P 500

    4,588.19
    +75.15 (+1.67%)
     
  • Dow

    34,695.13
    +673.09 (+1.98%)
     
  • Nasdaq

    15,416.62
    +162.57 (+1.07%)
     
  • BTC-USD

    56,596.15
    -2,008.94 (-3.43%)
     
  • CMC Crypto 200

    1,439.94
    +1.06 (+0.07%)
     
  • FTSE 100

    7,129.21
    -39.47 (-0.55%)
     
  • Gold

    1,766.60
    -17.70 (-0.99%)
     
  • Crude Oil

    66.70
    +1.13 (+1.72%)
     
  • 10-Yr Bond

    1.4630
    +0.0290 (+2.02%)
     
  • Nikkei

    27,753.37
    -182.25 (-0.65%)
     
  • Hang Seng

    23,788.93
    +130.01 (+0.55%)
     
  • FTSE Bursa Malaysia

    1,501.74
    +4.81 (+0.32%)
     
  • Jakarta Composite Index

    6,583.82
    +76.14 (+1.17%)
     
  • PSE Index

    7,032.54
    +85.48 (+1.23%)
     

Brazil's Votorantim and Canada Pension Plan to form energy joint venture

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
The main entrance of a Votorantim plant, Brazil's largest diversified industrial group, is pictured in the city of Votorantim
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

BRASILIA (Reuters) - Privately-owned Votorantim SA, one of Brazil's biggest diversified industrial groups, has announced a plan with Canada Pension Plan to consolidate their energy assets in Brazil to create a listed integrated renewables platform, they said on Monday.

The joint venture between Votorantim Energia and CPP Investments, Canada Pension Plan's global investment arm, will include another stakeholder, Companhia Energetica de Sao Paulo, Sao Paulo's power generation company known as CESP.

CPP Investments will invest an additional 1.5 billion reais (C$340 million) to increase the venture's capital base, the companies said.

The new company will have net revenue estimated at 5.8 billion reais based on the 2020 results, and a diversified energy matrix with an installed capacity of 3.3 gigawatts (GW), of which 2.3 GW is hydroelectric sources and 1.0 GW in wind power, they said.

The company will already be born with a pipeline of projects that combine hydro and solar sources, as well as hybrid solutions, totaling 1.9 GW, they said in a statement.

The new company will also be one of the largest energy traders in Brazil, with more than 2.6 average GW sold in 2020 and a portfolio of more than 400 customers.

"By consolidating our assets in a single company, Votorantim and CPP Investments intend to start a new cycle of growth and value generation together with CESP's shareholders," said Joao Schmidt, Votorantim's chief executive.

(Reporting by Anthony Boadle; Editing by Chris Reese)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting