By Brazil Stock Guide – Vale SA (VALE3.SA) said Thursday it completed the formation of a joint venture with Global Infrastructure Partners to consolidate assets under Aliança Energia, securing $1 billion in cash from the deal.
Under the terms, Vale will hold a 30% stake in the joint venture, with GIP taking the remaining 70%. The entity consolidates the Sol do Cerrado solar complex and the Risoleta Neves hydropower plant in Minas Gerais, along with six additional hydro plants in the state and three wind farms in Rio Grande do Norte and Ceará, according to Reuters.
“The transaction secures a strategic volume of energy for Vale at competitive costs, with prices set in US dollars without inflation adjustment, while supporting the company’s 100% renewable energy matrix in Brazil,” the miner said in a statement.
In August, Vale’s executive vice president of finance and investor relations, Marcelo Bacci, told analysts the operation — initially expected to close in the third quarter — would contribute to a debt reduction trajectory in the second half of 2024.
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