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Denham Capital-Backed Ceiba Energy Acquires Breitener Energética from Petrobras

16 November 2021

Denham Capital-backed Ceiba Energy acquired 100% of Breitener Energética, a Brazil-based holding company which owns two operating gas-fired power plants, from Petrobras. The acquisition will be financed with equity invested from Denham Capital’s funds and debentures issued in the Brazilian debt capital markets.

(Ceiba Energy) Ceiba Energy, a Houston-based power company with a focus in Latin American markets, is pleased to announce that it has completed the acquisition of 100% of Breitener Energética S.A. (“Breitener Energética”) from Petrobras and other minority partners. Ceiba Energy is backed by Denham Capital, a global sustainable infrastructure, energy and resources focused investment firm.

Breitener Energética is a holding company that owns Breitener Jaraqui S.A. and Breitener Tambaqui S.A. (“Breitener Group”). Breitener Group owns and manages Tambaqui and Jaraqui, two operating gas-fired power plants located in Manaus, AM, Brazil. Tambaqui and Jaraqui have installed capacity of 155.8 MW and 156.7 MW, respectively. Both plants are fully contracted through a Build, Own and Transfer Agreement with Amazonas Energia, a subsidiary of Eletrobras.

The acquisition has been financed with equity invested from Denham Capital’s funds and debentures issued in the Brazilian debt capital markets, through a public offering under CVM 476 ruling, on which Banco Santander (Brasil) S.A. acted as Lead Bookrunner.

Emilio Vicens, Chief Executive Officer of Ceiba Energy, commented:

“We are very excited to announce the completion of the acquisition of Breitener Energética. With the addition of 310 MW of power generation capacity, this asset is a great complement to our growing portfolio of infrastructure projects in Brazil as we look to capitalize on the significant growth potential in the region and expand our footprint across both Latin American and broader Caribbean markets.  

 At Ceiba, we pride ourselves on our asset management and optimization abilities. We look forward to working collaboratively with the entire Breitener team, bringing together the existing management’s excellent operational expertise with our commercial and technical knowledge to continue and further optimize the operations of the plant and resume the Breitener Group’s successful history of providing electricity to the people of Amazonas State, all part of our ambition to deliver affordable, reliable and low-carbon energy to our markets.”

Saurabh Anand, Managing Director in Denham’s Sustainable Infrastructure team, added:

“We are very pleased that Ceiba has completed this transaction. Brazil is a key market for Denham Capital, and the addition of Breitener to Ceiba’s portfolio will further solidify its role as a leader in the region’s fast-growing power sector. With a firm focus on opportunistic M&A transactions, Ceiba is poised to significantly grow its presence in Latin American and Caribbean infrastructure markets in the near-term. We look forward to supporting Ceiba in its growth ambitions and continuing to work alongside management to develop projects which advance economic growth, sustainable development and the energy transition.”