French investment fund negotiating Brazilian windfarm investment

18 September 2019 - 12:00 am UTC

French investment fund STOA Infra & Energy expects to close its acquisition of a minority stake in two Brazil-based windfarms by the end of October and is negotiating another potential energy investment in Argentina, said a source close to the situation.


STOA is in the process of acquiring a 35% stake in a Brazilian wind portfolio that includes the Ventos da Serra do Mel I (163 MW) and Ventos da Serra do Mel II (128 MW) projects. They are being built by French developer Voltalia in the Serra Branca cluster in the state of Rio Grande do Norte.


Linklaters (legal) is advising STOA and Jones Day (legal) is advising Voltalia.


Voltalia previously sold 100% shares in 273MW of ready-to-build wind projects also in the Serra Branca cluster to Actis-backed renewable energy platform Echoenergia.


STOA is a joint venture formed by French public financial institution Caisse des Dépôts (CDC, 83.3%) and French Development Bank AFD (16.7%).


Besides the potential acquisition in Brazil, STOA is also a member to a Sacyr-led consortium that was among six groups qualified to bid on a 20-year, USD 4.4bn Metro de Bogotá – Line 1 concession in Colombia in June.


One of the six, Spanish-Brazilian consortium Consorcio Línea 1 comprising Obrascon Huarte Laín, Andrade Gutiérrez Engenhaira, Camargo Corrêa Infra Constructores and CCR, withdrew from the process on 19 August.


Brazil and Colombia are the main focus for STOA in Latin America, but the investment fund is also in early-stage negotiations for another energy investment in Argentina, the source said.


STOA also considers investments in Central America on a case-by-case basis, the source added. 


STOA and Voltalia did not return calls seeking comment.


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