VH Global Sustainable Energy Opportunities plc

08 December 2022

VH Global Sustainable Energy Opportunities plc completes acquisition of 198MW hydro asset in Brazil

VH Global Sustainable Energy Opportunities plc ("GSEO" or the "Company") - the London-listed investment company advised by Victory Hill Capital Partners LLP ("Victory Hill") focused on energy infrastructure that is essential for the global transition towards net zero - is pleased to announce the completion of the acquisition of the Mascarenhas Hydro Electric Facility ("Mascarenhas", or the "Hydro Facility") in the state of Espírito Santo, Brazil.

The final amount paid on completion was BRL 708mn versus the BRL 800mn which was subject to adjustments as highlighted in the Company's announcement of the signing of the purchase agreement on 31 August 2022. These are closing adjustments based on the latest balance sheet related to agreed cash and working capital levels.

The expected annualised returns support the Company's target annual dividend and exceed its target total return.

The Hydro Facility has been acquired from EDP Energias do Brasil S.A., a listed company on the Sao Paulo Stock Exchange, one of Brazil's largest electric utility companies and a subsidiary of leading European utility Electricidade de Portugal S.A. (EDP). 

Mascarenhas has been in operation since 1974 and has a peak capacity of 198MW. Since being first commissioned, the Hydro Facility has been managed and maintained to a high standard and offers a strong and sustainable cashflow potential for GSEO with an estimated remaining useful life of 45 years. Over 60 per cent of the revenues are secured under long-term power purchase agreements (PPA) with local utilities which are adjusted with local inflation with no caps. The energy regulator in Brazil ranks over 140 hydro plants across the country, based on a number of factors to assess their quality and operation. The Mascarenhas facility has been consistently ranked as a top 10 hydro plant in the country.

This acquisition adheres to the Company's renewable power enablement strategy for Brazil, an OECD Key Partner country with the largest power market in Latin America and a population of over 213 million people. Brazil is the largest hydro power market in the world.

www.vh-gseo.com

The Company's LEI is 213800RFHAOF372UU580.

For further information, please contact:

Edelman Smithfield (PR Adviser)

Ged Brumby                      + 44 (0)7540 412 301

Kanayo Agwunobi            +44 (0)758 101 0560

Victory Hill Capital Partners LLP (Investment Adviser)

Navin Chauhan                 [email protected]

Numis (Joint Corporate Broker)

David Benda                       +44 (0)20 7260 1000

Matt Goss

Alvarium Securities Limited (Joint Corporate Broker)

Mark Thompson               +44 (0)20 7016 6711

Eddie Nissen                      +44 (0)20 7016 6713

Oliver Kenyon                    +44 (0)20 7016 6704

G10 Capital Limited (AIFM)

Mohammed Rahman       + 44 (0)20 7397 5450

Paul Cowland

Apex Fund and Corporate Services (UK) Limited (Company Secretary)

Geetika Dayal                     +44 (0)7903 820 161

About Victory Hill Capital Partners LLP

Victory Hill Capital Partners LLP ("VHCP") is authorised and regulated by the Financial Conduct authority (FRN 961570).

Victory Hill is based in London and was founded in May 2020 by an experienced team of energy financiers that spun-out of a large established global project finance banking group. The team have an established track record built over six 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 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 22 years of relevant energy finance experience. 

The VHCP team deploys its experience across different financial disciplines in order to assess investments holistically from multiple points of view. 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.

VHCP 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).

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