BlackRock buys stake in Brasol through its renewable energy fund – 10/27/2023 – Market

BlackRock announced this Thursday (26) the acquisition of almost 50% of the Brazilian renewable infrastructure company Brasol.

The value of the negotiation made through BlackRock’s renewable energy fund, the Climate Finance Partnership (CFP), which accelerates public-private partnerships in emerging countries, was not disclosed.

Ty Eldridge, CEO of Brasol, however, said that the investment will allow the company to double its megawatt generation capacity (from 100 to 200) and also the number of projects in progress.

This is CFP’s first investment in Latin America. Siemens Financial Services (SFS), the financial arm of the German conglomerate, has been Brasol’s main investor since 2020 and is the majority shareholder in the business.

Brasol’s main business is the generation of solar energy, through distributed generation, with the construction of solar plants for consumers of different sizes (generally large).

Following Siemens’ investment, the company expanded its portfolio to energy efficiency projects and charging networks for electric vehicles. “This is something that is a little further away, but we see very strong potential and market interest,” Eldridge said.

With BlackRock, the company estimates that the new businesses will create up to 5,000 direct and indirect jobs and a greater share of transmission and distribution.

During the announcement of the partnership with BlackRock, Eldridge also cited the new regulation for distributed generation (which includes a calendar for the progression of charges for the use of the electricity transmission network) as a stimulus for the development of new products.

For BlackRock, the largest private fund manager in the world, Brazil is well positioned for the low-carbon economic transition, a process that will mobilize thousands of dollars.

Karina Saade, president of BlackRock in Brazil, says that investors have increasingly looked to the country

“We believe that Brazil has the potential to be an important investment destination in this context. We are confident of the role that decarbonization will have in capital flows around the world and confident of Brazil’s potential and how important foreign capital will be for the development of these technologies “, he states.

Anmay Dittman, director and portfolio manager of CFP at BlackRock, says that the Brazilian company impressed the manager with its very clear focus of action.

“Brasol stands out as a leading solar developer in C&I [comercial e industrial]with a portfolio in most regions of the country and ambitions to expand into other energy transition sectors”, he says.

According to Eldridge, from Brasol, the company has projects in almost all Brazilian states. According to its website, only Goiás does not have any company operations. The page also says that the company has already been to 14 countries.

The transaction between the companies should be finalized by the end of this year. XP Investimentos, the Pinheiro Neto office, and Brasol participate in the operation.

BlackRock’s CFP was advised by Clifford Chance and Cescon Barrieu Advogados. Lobo de Rizzo Advogados and White & Case worked with Siemenes Financial Services.

The other shareholders were advised by Barbosa, Müssnich e Aragão Advogados and Apollon Law Group.