Brazil’s largest private electricity producer, Engie Brasil, has successfully raised 8.4 billion reais ($1.66 billion) at a price of 30.50 reais per share in a follow-on share offering, in one of the largest follow-on offerings in the country’s capital market this year, Reuters reported on Wednesday. The power company intends to use ~$1.13 billion of the capital increase to fund the acquisition of a 40% stake in the Jirau hydroelectric plant from its controlling French shareholder.
The deal effectively brings the 3,750-megawatt Jirau plant, located on the Madeira River, directly under Engie Brasil, securing over 20 years of predictable, inflation-indexed cash flows backed by long-term contracted revenues.
Engie Brasil focuses on the generation, transmission and commercialization of energy, as well as natural gas transportation and energy solutions. It owns and operates dozens of power plants across Brazil, totaling over 12,900 MW of installed capacity, with a strong focus on renewable sources. This includes a significant stake in major facilities like the Jirau Hydroelectric Plant in the Amazon. Engie operates over 2,800 km of power transmission lines, along with Brazil’s largest natural gas transportation network spanning over 4,600 km.
Driven by soaring demands from a growing economy, Brazil is expanding its electricity production, including through wind and solar, to avoid over-dependency on hydropower. Wind and solar combined now generate over a third of the country’s electricity during peak months while low-carbon power sources (hydro, wind, solar, and biomass) now account for 85% to 90% of Brazil’s total electricity generation.
Engie’s deal is part of a clear reopening of Brazil’s equity capital markets after several years of lacklustre activity. Brazil’s stock market has attracted renewed foreign capital in 2026, leading to the return of large equity offerings after a long period of inactivity.
By Charles Kennedy for Oilprice.com
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