Renewable Energy M&A: Cubico Sustainable Investments exits Brazilian onshore wind space, sells 450 MW of assets to AES for $393 million

published on 10 August 2022

The purchase price comprises $213 million in equity and the assumption of $180 million in net debt. AES will partially fund the acquisition via a private capital increase through the issue of common shares, which is expected to raise a maximum of $216 million. AES’ existing controlling shareholders have committed to subscribe to a minimum of $100 million of shares. Post deal completion, AES Brasil will have an installed renewables capacity of 5.2 GW (50% solar + wind), of which 4.2 GW is operational and 1 GW under construction.

The assets acquired comprise three operational wind farms in the states of Pernambuco, Piaui and Rio Grande do Sul. The projects, which have been commercial since 2015, are fully contracted until 2035 through power purchase agreements (PPAs) at an average price of $37/MWh.

UK-based Cubico was formed by Banco Santander, Ontario Teachers' Pension Plan and the Public Sector Pension Investment Board in 2015. The company inherited $2 billion of capital and 19 wind, solar and water infrastructure assets across Brazil, Mexico, Uruguay, Italy, Portugal, Spain, and the UK, comprising 1.4 GW in operation, construction or under-development. Cubico kickstarted its LatAm expansion in Jan’16, when it acquired two of the three wind farms sold under the latest deal in Brazil. Since then, the company has progressed significantly on its latAm portfolio, and now holds 600 MW of operational wind and solar capacity in Mexico and 200 MW of operational onshore wind projects in Uruguay. The latest Brazil deal with AES marks Cubico’s second sale to AES, and closely follows a statement claiming that the company intends to diversify its LatAm portfolio to include solar assets.

With the aim of analyzing Cubico’s LatAm renewables strategy, the Enerdatics research team has compiled a brief summary of the company’s major moves in the region - which can  be viewed in the above slide.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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