Sterlite Power and Vinci Partners in alliance for Vineyards Project in Brazil
- April 15, 2021
Sterlite Power and Vinci Energia (VIGT11), through Vinci Infraestrutura Gestora de Recursos LTDA, announced the formalization of the commitment of first acquisition of issuance of debentures convertible into shares for the Vineyards Project in Brazil.
Convertible debentures
The transaction foresees R$149 million in debentures aimed at developing projects in Sterlite Power’s portfolio. The investment amount can be converted into shares with an 80 per cent purchase option when the Vineyards project is complete in this year. The remaining 20 per cent can be purchased within 190 days. A previous debenture issue was held in 2019 when R$250 million was raised. The contract also gives way for the parties to negotiate for more projects in Sterlite Power’s portfolio.
Project outline
With an initial investment of R$395 million, the Vineyards Project includes the construction of 112 km of transmission lines, implementation of two new 496 MVA substations, and the expansion of four substations in the regions of Garibaldi, Bento Gonçalves, Lajeado, and Bagé.
Second transaction
This is the second transaction between the two companies. The Arcoverde Project, completed in 2019, with 129 km in transmission lines, three substations (including one new) in the Region of Pernambuco, was acquired by the fund in 2020.
[1 R$ = 1 Brazilian Real = Rs.13.26, as of April 15, 2021]
