LONDON, UK: VH Global Sustainable Energy Opportunities introduced the completion of the acquisition of the Mascarenhas Hydro Electric Facility within the state of Espírito Santo, Brazil.
The final quantity paid on completion was BRL 708mn versus the BRL 800mn which was topic to changes as highlighted within the Company’s announcement of the signing of the acquisition settlement on 31 August 2022. These are closing changes based on the newest balance sheet associated to agreed money and dealing capital levels.
The anticipated annualised returns support the Company’s goal annual dividend and exceed its goal total return.
The Hydro Facility has been acquired from EDP Energias do Brasil S.A., a listed firm on the Sao Paulo Stock Exchange, one of Brazil’s largest electrical utility companies and a subsidiary of main European utility Electricidade de Portugal S.A. (EDP).
Mascarenhas has been in operation since 1974 and has a peak capability of 198MW. Since being first commissioned, the Hydro Facility has been managed and maintained to a excessive standard and offers a strong and sustainable cashflow potential for GSEO with an estimated remaining helpful lifetime of forty five years. Over 60 per cent of the revenues are secured under long-term energy buy agreements (PPA) with native utilities that are adjusted with native inflation with no caps.
The energy regulator in Brazil ranks over 140 hydro plants throughout the country, based on a variety of things to evaluate their excessive quality and operation. The Mascarenhas facility has been consistently ranked as a top 10 hydro plant within the country.
This acquisition adheres to the Company’s renewable energy enablement technique for Brazil, an OECD Key Partner nation with the largest energy market in Latin America and a inhabitants of over 213 million people. Brazil is the largest hydro energy market within the world.