APG plugs €237m in Latin American grid

The Dutch pension has agreed to jointly invest €372m with Spain's Elecnor to expand the company's transmission business. 

Netherlands-based APG Asset Management has acquired a 49 percent stake in Celeo Redes, a subsidiary of Spanish infrastructure and energy developer Elecnor.

Through the transaction, for which APG is due to commit €237 million, the pension fund has agreed to jointly invest €372 million with Elecnor in Latin American transmission projects over the next five years. The deal, still subject to regulatory approval, is expected to close in the third quarter of the year.

Celeo Redes is a subsidiary of Celeo Concesiones e Inversiones, the company through which Elecnor invests, operates and exploits its investment project assets. The group is involved in 11 electricity transmission concession companies in Brazil, totalling 3,734 kilometres of transmission lines. All are 30-year contracts put out to tender by Agencia Nacional de Energía Eléctrica, the country’s energy regulator.

It is not the first time Elecnor has partnered with institutional investors. In late June its wind subsidiary sold 49 percent of the 100-megawatt (MW) L'Érable Wind Farm to a consortium comprising Canadian insurer Industrialist Alliance Insurance and Financial Services, Ontario fund manager Fiera Axium and Quebec-based renewables developer Eolectric.

Elecnor’s latest projects include a 328-kilometre transmission line between the states of Minas Gerais y São Paulo as well as two lines, respectively 255 kilometres and 196.5 kilometres long, in Chile.

APG, which manages assets of about €343 billion, started investing in infrastructure in 2004 through a commitment to one of Macquarie’s funds. It has since built an ambitious direct investment programme through which it has backed projects such as Texas road concessions North Tarrant and LBJ, Canadian toll road operator ConnectEast, and Antwerp-based bulk liquid storage business LBC Tank Terminals.