Madrid, 15 July 2020
Macquarie has reached an agreement with EDP that will see Viesgo significantly increase the size of electricity distribution network assets under its control. As part of the agreement, EDP will acquire a 75.1 per cent stake in Viesgo from Macquarie-managed funds. Viesgo will also sell its remaining electricity generation assets to EDP and EDP Renováveis.
Viesgo is a key component of the Iberian electricity market – owning and operating 31,411 kilometres of regulated electricity distribution networks in Northern Spain, approximately 500 MW of renewable energy generation capacity in Spain and Portugal, and 913 MW of soon to be decommissioned thermal coal generation capacity in Spain.
EDP will acquire a 75.1 per cent interest in Viesgo, including the interest currently owned by Macquarie European Infrastructure Fund 4. Macquarie Super Core Infrastructure Fund will retain the remaining 24.9 per cent. EDP will also contribute E-Redes, its adjacent 20,766 kilometre electricity distribution network, to Viesgo.
Viesgo will sell its renewable energy portfolio to EDP Renováveis and thermal coal assets to EDP. Following this transaction, Viesgo will be solely focused on the operation and development of its existing Viesgo Distribution and Begasa networks, and the new E-Redes network – representing a combined network length of 52,177 kilometres.
Juan Caño, Head of Iberia for Macquarie Infrastructure and Real Assets and a member of Viesgo’s Board of Directors, said: “It is essential that we continue investing in Spain’s electricity distribution network infrastructure in order to ensure that households and industry continue to have access to a reliable and safe source of electricity. By focusing Viesgo on its regulated electricity distribution activities through this long-term partnership with EDP, we can ensure that this critical utility remains at the heart of Spain’s efforts to transition to a new energy mix.”
Miguel Stilwell d’Andrade, Interim CEO of EDP, said: “This landmark transaction reinforces our positioning at the forefront of the energy transition and marks the beginning of a long-term partnership with Macquarie in electricity distribution networks in Spain, one of EDP’s core markets.”
Miguel Antoñanzas, President of Viesgo, said: “This new partnership will pave the way for a joint project at the forefront of the energy sector both in competitiveness and innovation, and with enormous growth potential. I would like to thank the Viesgo team for their dedication and commitment to the execution of an advanced strategy towards the early decarbonization of the energy system, and Macquarie for its support since 2015 that has made Viesgo one of the most dynamic and innovative companies in the industry”.
Macquarie-managed funds have been invested in Viesgo since 2015. During this time, Viesgo has progressively refocused its activities on its regulated electricity distribution network.
Completion of the transaction is subject to standard regulatory approvals.
Macquarie Infrastructure and Real Assets
Patrick Gallagher (London)
+44 7795 353820
Macquarie Infrastructure and Real Assets (MIRA) is one of the world’s leading alternative asset managers. For more than twenty-five years, MIRA has partnered with investors, governments and communities to manage, develop and enhance assets relied on by more than 100 million people each day. As at 31 March 2020, MIRA managed approximately €124 billion in assets that are essential to the sustainable development of economies and communities, including; 151 portfolio businesses, ~500 properties and 4.8 million hectares of farmland.
MIRA is a part of Macquarie Asset Management, the asset management arm of Macquarie Group, a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs more than 15,800 people and is listed on the Australian Securities Exchange (ASX:MQG).
EDP is a green integrated utility headquartered in Lisbon which aims to lead the energy transition to create superior value to its stakeholders. Close to 2/3 of our consolidated EBITDA comes from renewables development and operation in 15 countries, namely hydro, wind on-shore & off-shore and solar, which represent also >75% of our investments. Electricity networks in Portugal, Spain and Brazil represent ~25% of our consolidated EBITDA while Client Solutions and Energy Management in Iberia & Brazil have a weight ~10% of our consolidated EBITDA. Our main markets are Portugal, Spain, US and Brazil, and we have operations in 19 countries, in 4 continents, with more than 11,600 employees. EDP decarbonization targets for 2030 include: >90% electricity production from renewables, >90% reduction of specific CO2 emission vs. 2005 and to become 100% coal free. EDP shares are listed in Euronext Lisbon stock exchange.
EDP Renováveis (EDPR) is a listed subsidiary of EDP (82.6% owned), and a global leader renewable energy company headquartered in Madrid that designs, develops, manages and operates wind and solar power plants that generate electricity from renewable energy sources. EDPR was established by EDP in 2007 to hold and operate its growing renewable energy assets. With 1,543 employees and a sound development pipeline, first class assets, and market-leading operating capacity, EDPR has undergone exceptional development in recent years and is currently present in 14 markets (Belgium, Brazil, Canada, France, Greece, Italy, Mexico, Poland, Portugal, Romania, Spain, the UK, US and Colombia).