SAO PAULO (Reuters) - Renova Energia SA sold a wind farm project to a unit of AES Corp for 600 million reais ($193 million) on Tuesday, enabling the Brazilian renewable power company to replenish cash amid a severe cash crunch.
In a securities filing, AES Tietê Energia SA said it plans to assume 1.150 billion reais worth of debt owed by the Alto Sertao II project. The deal’s value could increase by 100 million reais within five years, depending on whether the project outperforms some unspecified operational metrics.
Reuters reported on Jan. 2 that Renova and AES Tietê, a unit of AES Brasil, had reached an accord over Alto Sertao II for a price between 600 million reais and 700 million reais.
($1 = 3.1071 reais)
Reporting by Guillermo Parra-Bernal and Luciano Costa; Editing by Jonathan Oatis