LONDON–(BUSINESS WIRE)–VH Global Sustainable Energy Opportunities plc (“GSEO”) – a £243m London-listed Investment company – is proud to announce a $63m commitment to fund the construction of 18 remote distributed solar generation projects across ten Brazilian states with a total capacity of 75MW. Brazil is a Key Partner of the OECD and one of the world’s fastest growing energy markets.
An initial tranche of $4m will fund the construction of four projects across Rio de Janeiro, which once operational will provide 5MW of energy to a combination of local communities and regional utilities.
The initial tranche will be followed by a second $24m tranche in June to fund up to eight projects across Sergipe, Rio Grande do Norte, Paraiba, Mato Grosso do Sul, Piaui, Bahia and Para, which will provide 28MW of energy.
The remaining $35m will be deployed by August across Rio de Janeiro, Minas Gerais, Bahia and Sao Paulo to build six solar projects which will generate 42MW of power.
The fully-equity funded projects are at the ready-to-build stage and are expected to be operational in less than six months from investment. Once operational, the expected annual returns will exceed the Company’s target annual dividend yield of 5% and total return of 10%.
An independent assessment of the project, as per the process, has concluded that it is compliant with the Company’s six relevant Sustainable Development Goals – goals 3, 7, 8, 9 13 and 17 – and will do no significant harm in the context of the remaining eleven goals.
GSEO is partnering with developer Energea Global LLC, which has a proven track record in developing and operating distributed power generation assets in Brazil.
The aim of this investment is to support and accelerate the growth of a sustainable energy system in Brazil by improving and securing localised access to clean energy and helping to lower Brazilian energy prices.
The projects involve building solar PV farms to supply energy to creditworthy commercial and industrial energy users, as well as large multinational corporations with operations in Brazil. About half of the total production capacity is to be contracted with a multinational telecoms company. The lengths of the contracts will be 20 years on average and will be inflation-linked.
Approximately 37% of the net proceeds raised on IPO are currently committed to the Enhanced Pipeline Assets.
Eduardo Monteiro, Co-Chief Investment Officer of Victory Hill Capital Advisors LLP (“Victory Hill”), investment adviser to GSEO, said: “As promised to investors, this funding commitment marks the beginning of a very exciting journey for the Company in Brazil, where we can support real and lasting improvements in the country’s energy infrastructure. Brazil is experiencing rapid growth in its energy sector and there is significant potential for investors with the right expertise to help contribute to the country’s growth with cleaner and reliable sources of power.”
Mike Silvestrini, Managing Partner at Energea, said: “Brazil is one of the most exciting markets in the world when it comes to distributed generation and we are proud to have the backing of an experienced team at Victory Hill to develop further distributed solar power generation across the country. Right now, Brazil has the attractive combination of enabling policy landscape, strong energy economics and high degrees of customer adoption, marking it as a prime opportunity for investors looking to have a positive impact on the world and help battle the climate crisis.”
Notes to editors
Distributed power generation: Distributed generation refers to the use of technology such as solar panels to generate electricity near to where it will be used, serving either a single home or business, or forming part of a ‘microgrid’ tied into the larger electricity network which can be used to serve thousands of homes and businesses. Distributed generation can help support delivery of clean, reliable power to additional customers and reduce electricity losses along transmission and distribution lines and help lower energy prices.
About Victory Hill Capital Advisors LLP
Victory Hill Capital Advisers LLP is the investment-focused subsidiary of Victory Hill Capital Group LLP. Victory Hill Capital Advisors LLP (FRN 938594) is an Appointed Representative of G10 Capital Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 648953).
Victory Hill is based in London and was founded in May 2020 by an experienced team of energy financiers that have spun-out of a large established global project finance banking group. The team have an established track record built over five years while working together in their previous roles and participating in over $37.1bn in sustainable energy project transaction values, generating over 24.2 per cent. equity returns. In addition, the team has also participated in more than $200bn in transaction values across 91 conventional and renewable energy-related transactions in over 30 jurisdictions worldwide, throughout their individual careers. The average experience per individual is 21 years of relevant energy finance experience.
The Victory Hill team deploys its experience across different financial disciplines to holistically assess investments from different perspectives. The firm pursues operational stability and well-designed corporate governance to generate sustainable positive returns for investors. It focuses on supporting and accelerating the Energy Transition and the attainment of the UN Sustainable Development Goals.
Victory Hill is a signatory of the United Nations Principles for Responsible Investing (UN PRI), the United Nations Global Compact (UN GC) and is a formal supporter of the Financial Stability Board’s Task-Force on Climate-related Disclosures (TFCD).
Energea was launched in 2017 by American entrepreneurs Mike Silvestrini and Chris Sattler, who have built successful US distributed generation businesses, Greenskies Renewable Energy and North American Power. Today, Energea Global develops projects across multiple countries around the world and have built a presence in Brazil over the last four years with over 24 staff members based in Brazil and the US. The company is an expert developer and operator of highly differentiated distributed generation projects.