Iberdrola Completes GIC Transmission Alliance Expansion in Brazil

Iberdrola announced on October 1, 2026 that it has completed, through its Brazilian subsidiary Neoenergia, the expansion of its strategic alliance with GIC, Singapore’s sovereign wealth fund, in the electricity transmission network business in Brazil. The transaction adds seven Neoenergia transmission assets to the partners’ joint platform, Neoenergia Transmissão, which now comprises 16 assets and 6,710 kilometres of transmission lines with an asset value of around 25.5 billion Brazilian reais, approximately 4.25 billion euros, according to Iberdrola’s announcement.

Neoenergia first disclosed the completion on September 30, 2026, stating in its own announcement that it had concluded the transaction and incorporated the seven assets into the joint platform. With the closing, Neoenergia increases its stake in Neoenergia Transmissão from 50% to 51%, retaining control of the platform, while GIC holds the remaining 49%.

Iberdrola said the platform has estimated annual regulated revenues of approximately 1.9 billion reais, or 320 million euros. The company said the portfolio combines scale, geographical diversification and long-term regulated revenues, positioning the platform among Brazil’s largest privately operated electricity transmission businesses.

The seven assets added to the platform are Neoenergia Guanabara, located in Rio de Janeiro; Neoenergia Vale do Itajaí, in Santa Catarina; Potiguar Sul, in Rio Grande do Norte; Neoenergia Morro do Chapéu, in Bahia; Neoenergia Estreito, in Minas Gerais; Neoenergia Alto Paranaíba, in São Paulo and Minas Gerais; and Neoenergia Paraíso, in Mato Grosso do Sul. Iberdrola said the additions strengthen the platform’s presence across key regions of the country.

Terms of the April Agreement

Neoenergia announced the agreement behind the transaction on April 28, 2026. Under that agreement with Unique Power FIP, involving a 49% stake in the seven transmission assets, the agreed value was R$2.4 billion as of the base date of September 30, 2025, subject to customary adjustments until completion, according to the announcement published in GIC’s newsroom. The agreement also provided for Neoenergia’s acquisition of a 1% stake in Neoenergia Transmissão, giving it control and consolidation of the platform with a 51% shareholding.

Completion was subject to customary conditions precedent, including approvals by the Administrative Council for Economic Defense (CADE) and the National Electric Energy Agency (ANEEL). The April announcement estimated that, after completion, Neoenergia Transmissão would hold 16 transmission assets totaling approximately 6,710 kilometres of lines with estimated Annual Permitted Revenue (RAP) of about R$1.8 billion, and said the portfolio would rank among the five largest transmission companies.

Neoenergia chief executive Eduardo Capelastegui said the partnership’s third agreement with GIC in transmission demonstrated the strength of the relationship and the consistency of the company’s strategy. “We are building a robust, efficient, and long-term transmission platform, combining financial discipline, strategic partnerships, and a permanent focus on value creation,” he said. Neoenergia said the transaction advances its asset rotation plan, portfolio optimization and balance-sheet strengthening without relinquishing control of strategic assets.

Three Transactions Since 2023

The closing is the third transaction completed under the strategic partnership between Neoenergia and GIC, which began in 2023 with the creation of Neoenergia Transmissão under joint control and a 50%/50% shareholding structure.

The first transaction closed on September 30, 2023, a strategic agreement to develop transmission networks in Brazil for 2.4 billion reais, or 456 million euros, after receiving approvals from ANEEL and CADE. The companies agreed to co-invest in eight operational transmission assets, Jalapão, Santa Luzia, Dourados, Atibaia, Biguaçu, Sobral, Narandiba and Río Formoso, covering 1,865 kilometres of power lines with an average concession term of 25 years. Neoenergia’s 50% stake in the company was valued at 1.2 billion reais, or 228 million euros. The 2023 agreement included a framework agreement to participate jointly in future tenders for new transmission assets in Brazil, and Neoenergia stopped consolidating the debt of the operational assets within the transaction’s scope. That announcement described GIC as a global investment firm established in 1981 and the manager of Singapore’s foreign exchange reserves.

The second transaction followed on April 23, 2025, when Neoenergia agreed to sell 50% of its stake in the Itabapoana transmission asset to GIC for R$127.5 million, subject to usual adjustments. The asset was to be contributed to Neoenergia Transmissão, whose capital structure remained evenly split between the two partners at that time.

Iberdrola said the transaction reinforces its growth strategy, capital discipline and support for the development of Brazil’s electricity infrastructure. The company plans to invest nearly 30 billion euros in electricity transmission and distribution networks through 2028, with the United Kingdom, the United States and Brazil as its main investment destinations. Iberdrola reported a current Regulated Asset Base of 55 billion euros and said it expects the figure to exceed 90 billion euros by 2031 in countries with what it described as clear and stable regulatory frameworks, citing the United Kingdom, the United States and Brazil.