Sterlite Power partners Vinci Energia to buy Vineyards Project

Sterlite Power on Thursday said it has partnered with Vinci Energia in the power transmission sector to buy Vineyards Project. "Sterlite Power and Vinci Energia (VIGT11), through Vinci Infraestrutura Gestora de Recursos LTDA, announced the formalisation of the commitment of first acquisition of issuance of debentures convertible into shares for the Vineyards Project that is in the final phase of implementation," a Sterlite Power statement said.

The transaction under this relevant fact foresees 149 million Brazilian Real 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 project is complete this year. The remaining 20 per cent can be purchased within 190 days.


With an initial investment of 395 million Brazilian Real, 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 Goncalves, Lajeado, and Bage.

A previous debenture issue was held in 2019 when 250 million Brazilian Real was raised.

The contract also paves way for the parties to negotiate for more projects in Sterlite Power's portfolio.

"This partnership is an important recognition for our operations in Brazil for the last four years and our long-term plan in the country. We understand that Vinci has identified the quality of our assets for the composition of its infrastructure investment fund, and we are happy to continue together on this journey," Marco Tanure, CFO of Sterlite Power Brazil, said in the statement.

This is the second transaction between the two companies. Arcoverde Project, completed in 2019, with 129 km in transmission lines, three substations (a new one) in the Region of Pernambuco, was acquired by the fund in 2020.

"The partnership involving Vineyards represents an important acquisition for Vinci Energia FIP-IE (VIGT11), which focuses on the electricity sector. This will be the seventh asset acquired by the fund..." Jose Guilherme Cruz Souza, partner and head of Infrastructure at Vinci Partners, said.

Sterlite Power is a global developer of power transmission infrastructure with projects in India and Brazil.