Latin American steelmaker Gardau’s subsidiary Gerdau Next and NW Capital signed binding instruments with Newave Energia for the subscription of equity interest in the company's share capital and the acquisition of long-term energy, by the company and its subsidiaries, of 30% of the energy generated by power generation projects owned directly or indirectly by Newave and its subsidiaries, in a self-production regime. The value of the investments will be BRL 4.5 billion.Gerdau Next will hold the proportion of 33.33% of equity interest and NW Capital with 66.67%. The investment amount by Gerdau Next will be in the amount of up to BRL 1.5 billion, divided into two phases. In the first phase, Gerdau Next will invest the amount of BRL 500 million to be subscribed and paid in throughout 2023, according to the business plan approved by the investors and, in a second phase, the company will invest up to BRL 1 billion, subject to the achievement of certain goals.The investment made by NW Capital, together with Investment Funds distributed by XP Investimentos, will be BRL 1 billion to be subscribed and paid in throughout 2023, according to the same business plan and, in a second phase, of up to BRL 2 billion to be subscribed by investors as raised via the market.According to Gerdau, the operation represents investment in the development of greenfield projects for the generation of electricity with a capacity of approximately 2.5 GW, exclusively from solar or wind sources, with the expectation of starting generation in the years 2025 and 2026, in brownfield projects and electricity trading activities, whether in retail, directional and/or prepayment transactions. In addition, the deal aims to generate greater competitiveness in the cost of the steel business and provide the company with a clean energy supply, and goes towards achieving the carbon emissions reduction targets established by Gerdau.
Latin American steelmaker Gardau’s subsidiary Gerdau Next and NW Capital signed binding instruments with Newave Energia for the subscription of equity interest in the company's share capital and the acquisition of long-term energy, by the company and its subsidiaries, of 30% of the energy generated by power generation projects owned directly or indirectly by Newave and its subsidiaries, in a self-production regime. The value of the investments will be BRL 4.5 billion.Gerdau Next will hold the proportion of 33.33% of equity interest and NW Capital with 66.67%. The investment amount by Gerdau Next will be in the amount of up to BRL 1.5 billion, divided into two phases. In the first phase, Gerdau Next will invest the amount of BRL 500 million to be subscribed and paid in throughout 2023, according to the business plan approved by the investors and, in a second phase, the company will invest up to BRL 1 billion, subject to the achievement of certain goals.The investment made by NW Capital, together with Investment Funds distributed by XP Investimentos, will be BRL 1 billion to be subscribed and paid in throughout 2023, according to the same business plan and, in a second phase, of up to BRL 2 billion to be subscribed by investors as raised via the market.According to Gerdau, the operation represents investment in the development of greenfield projects for the generation of electricity with a capacity of approximately 2.5 GW, exclusively from solar or wind sources, with the expectation of starting generation in the years 2025 and 2026, in brownfield projects and electricity trading activities, whether in retail, directional and/or prepayment transactions. In addition, the deal aims to generate greater competitiveness in the cost of the steel business and provide the company with a clean energy supply, and goes towards achieving the carbon emissions reduction targets established by Gerdau.
