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Engie Brasil raises $1.7B in follow-on offering to buy stake in Jirau

The company plans to use about $1.13 billion of the proceeds to fund a 40% acquisition of the Jirau hydroelectric plant stake from its controlling French shareholder.

Reported · Written up by our desk · Energy

Brazilian power producer Engie Brasil raised 8.4 billion reais, about $1.66 billion, in a follow-on share offering priced at 30.50 reais per share, one of the largest capital raises in the country this year, according to Reuters as cited by OilPrice.

Engie Brasil said it expects to use roughly $1.13 billion of the capital increase to buy a 40% stake in the Jirau hydroelectric plant from its controlling French shareholder.

The transaction would bring the 3,750-megawatt Jirau facility, located on the Madeira River, directly under Engie Brasil, securing more than 20 years of predictable inflation-indexed cash flows backed by long-term contracted revenues.

Engie Brasil, which generates and transmits electricity and transports natural gas, said it owns and operates dozens of power plants across Brazil, with installed capacity totaling over 12,900 MW and a focus on renewables.

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