Neonergia courts GIC to fuel Brazil's power grid
SINGAPORE: Neoenergia plans to propose a sale of its transmission assets to Singapore's sovereign wealth fund GIC. It also reflects the growing global interest in Brazil's energy infrastructure.
The Brazilian electric utility, which is a subsidiary of Spain's Iberdrola, is set to offer GIC a 50% stake in a four-project transmission portfolio by 2026. CEO Eduardo Capelastegui discussed this potential deal during a recent quarterly briefing. He emphasised a careful plan for managing capital and lowering debt.
In a previous deal in 2023, GIC acquired 50% of eight operational transmission assets that span 1,865 km and generate BRL 1.2 billion (S$277.63 million).
According to the GIC 2023/2024 Report, over the 20 years up to 31 March 2024, its portfolio posted annualised real returns of 3.9%. Latin America accounts for 4% of GIC's global portfolio.
The current project is expected to be finished by end-2025. It expands Neoenergia's platform, which manages 6,279 km of transmission lines.
Neoenergia's asset rotation strategy is intentional. By selling selected infrastructure assets, the company frees up capital for reinvestment and simplifies its balance sheet. The sales from 2023 and 2025 have already brought in over BRL 1.3 billion (S$300.57 million), funding the company's BRL 7 billion (S$1.62 billion) annual investment in distribution networks and renewable energy projects.
Capelastegui highlighted the company's flexibility, mentioning that the sale is not necessary. 'We will carefully assess any offer to ensure it serves our shareholders' interests,' he stated. This careful approach was clear when the company decided to skip the October 2025 transmission auction, explaining that the returns were below their target of double-digit real returns.
The partnership with GIC provides strategic benefits for both sides. For Neoenergia, it offers financial strength and shared risks in Brazil's capital-heavy transmission sector. For GIC, it represents a stable, long-term investment in key emerging market infrastructure with substantial growth potential.
The promise of the venture is highlighted by recent project completions. In 2024, assets like Itabapoana, Estreito, and Paraíso generated an additional BRL 300 million (S$69.3 million) in revenue annually, and it is anticipated that assets currently under construction will generate an additional BRL 700 million (S$161.9 million).
The Neoenergia-GIC partnership is prepared to play a significant role in forming Brazil's power grid infrastructure as the country accelerates its energy transition.
GIC's potential purchase of transmission assets and its latest investment in German property tech firm Techem align with its strategic focus on infrastructure and sustainable energy solutions. document.addEventListener("DOMContentLoaded", () => { const trigger = document.getElementById("ads-trigger"); if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { entries.forEach(entry => { if (entry.isIntersecting) { lazyLoader(); // You should define lazyLoader() elsewhere or inline here observer.unobserve(entry.target); // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); observer.observe(trigger); } else { // Fallback setTimeout(lazyLoader, 3000); } });
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AsiaOne
3 hours ago
- AsiaOne
No clarity yet on baseline or pharmaceutical tariffs with US: DPM Gan, Singapore News
SINGAPORE – The US government did not negotiate its tariffs on Singapore and did not want to commit on whether the 10 per cent baseline tax could rise or fall in the future, said Deputy Prime Minister Gan Kim Yong. DPM Gan, who visited the US from July 20 to 26, added that he did not get to further discussions on pharmaceutical tariffs being contemplated by the Trump administration. He told the SG60 IPS-SBF Conference on July 29 that these talks did not take place as he did not get the chance to meet Commerce Secretary Howard Lutnick. He did, however, meet other officials, including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. They discussed ways to keep up the long and mutually beneficial bilateral economic relationship, as well as potential collaboration in areas like the digital economy. DPM Gan also met business leaders in New York, and congressional leaders handling trade issues in Washington. He also visited an ST Engineering aerostructures factory in Maryland. The US administration was 'not in the mood to discuss any discount to the baseline tariff', DPM Gan said at a dialogue moderated by David Rennie, The Economist's geopolitics editor. 'We also wanted to know whether the baseline tariff will stay at 10 per cent or will it be higher or lower? The answer was non-committal. They are still reviewing the tariff and, in time to come, they will make the appropriate announcement. So we just have to wait and see.' DPM Gan, who is also Minister for Trade and Industry, said he has told US officials that Singapore would be keen to negotiate its baseline tariff rate if the opportunity arises. Pharmaceuticals and semiconductors, which are key exports from Singapore to the US, are currently exempt from baseline tariffs. But US President Donald Trump had earlier in 2025 threatened to end an exemption for pharmaceutical imports, saying tariffs would be imposed 'at a level that you haven't really seen before'. The US is a major market for Singapore-based drugmakers including American multinationals like Pfizer and Johnson & Johnson. DPM Gan said official-level discussions between Singapore and the US Department of Commerce, which commenced before his trip, are still ongoing. 'I can't go into detail because negotiation is ongoing and there's a bit of a confidentiality we need to maintain on both sides,' he said when asked what the US was looking to secure through these talks. He added that the US generally had concerns about what the country experienced during the Covid-19 pandemic, when supplies of critical pharmaceuticals were disrupted. 'They want to make sure that they have a secure supply line of pharmaceuticals. They do want to see whether they can onshore this production, so that they can produce (it) themselves. But they also know that it's not possible to onshore everything, because some of the raw materials are actually (from) outside of America,' he said. 'They do need to think about how they can work with partners, trusted partners, to make sure that their supply chain is secure and reliable. So that is what they are looking for in their partners, including Singapore,' he added. 'I think the administration's focus now is to finish the negotiation of reciprocal tariffs. Then it will start to engage countries on specific sectoral tariffs in pharmaceuticals and semiconductors.' DPM Gan said Singapore has yet to engage the US on the prospect of semiconductor tariffs. However, he added that discussions to preserve the country's access to artificial intelligence equipment and semiconductors are under way. Speaking at the same conference earlier in the day, Prime Minister Lawrence Wong said Singapore's trade and investment relationship with America, even with the tariffs, remains important. 'We would prefer to have zero tariffs of course, but if it is the baseline rate, then we are at the lowest category. We can live with it, and we can still do business and there will still be many opportunities for trade with the US, because whatever is happening in America now, the economy is still resilient, and there is still tremendous innovation happening in American companies, and so there will still be opportunities there,' he said. DPM Gan in his dialogue said the US economy continues to be relatively resilient. He said that based on the feedback from US businessmen he met on his trip, the outlook for the US economy seems cautiously optimistic, adding that Mr Trump's One Big Beautiful Bill, which includes tax cuts and business support measures, may have contributed to this. He said Singapore continues to have a good working relationship with the US. The US was Singapore's second-largest trading partner in 2024, while Singapore was its 16th-largest trading partner. Singapore was also the third-largest Asian investor in the US. More than 250 Singapore companies operate across 45 states, supporting around 350,000 jobs in the US, according to the Republic's Ministry of Trade and Industry. The US also has a longstanding trade surplus and free trade agreement with Singapore. [[nid:720678]] The recent deals between the US and several countries, as well as the European Union economic bloc, are good news, DPM Gan said. 'This gives us a sense that there's good progress in the tariff negotiation. But I also come back with the sense that there remains significant uncertainty. I'm not sure whether the uncertainty has really been eliminated or even reduced,' he added. He cited the lack of clarity on the rules of origin that will be used to determine where products originate from. He also said it is unclear how reciprocal tariffs will be implemented, and how components from different countries and transshipped goods will be assessed. This comes on top of the uncertainty around sectoral tariffs, which are yet to be determined. There is also uncertainty about whether the investments that countries have pledged to the US under tariff deals are new contributions, or money that is currently invested in another country, DPM Gan said. 'For example, the EU has committed to make an investment... over a period of time. Japan has also committed investments into the US. Japan has been a major investor in Singapore. Whether the Japanese investment in Singapore will be diverted to the US is a question that is yet to be seen,' he said. 'There are (also) uncertainties as to how countries will respond to the outcome of the tariff negotiation. Some countries have also committed to purchase more from the US, and they would have been purchasing these products from other countries. Whether now, instead of purchasing from country A, country B, they will now purchase from the US, and therefore exports from these countries to affected countries will be changed,' he added. 'I think these uncertainties (are) second derivative uncertainties. No one is paying much attention yet, because we need to have a tariff settled, then we work out how the secondary impact would be.' Global supply chains will also be restructured if countries move their investments from destinations facing higher US tariffs to those facing lower tariffs, he said. 'The overall global trading system, what we call the rules-based multilateral trading system, that we depend on rules, respecting trade agreements with one another, and not change at will, is something that has been challenged,' DPM Gan said. 'Today, we can agree with one another on a certain tariff, but tomorrow, something happens. We start to change our tariff rate, and that is something that is very uncertain, and that has been seen over the last few months.' [[nid:720154]] This article was first published in The Straits Times . Permission required for reproduction.
Straits Times
14 hours ago
- Straits Times
No clarity yet on baseline or pharmaceutical tariffs with US: DPM Gan
Deputy Prime Minister Gan Kim Yong said he has told US officials that Singapore would be keen to negotiate its baseline tariff rate if the opportunity arises. SINGAPORE – The US government did not negotiate its tariffs on Singapore and did not want to commit on whether the 10 per cent baseline tax could rise or fall in the future, said Deputy Prime Minister Gan Kim Yong. DPM Gan, who visited the US from July 20 to 26 , added that he did not get to further discussions on pharmaceutical tariffs being contemplated by the Trump administration. He told the SG60 IPS-SBF Conference on July 29 that these talks did not take place as he did not get the chance to meet Commerce Secretary Howard Lutnick. He did, however, meet other officials, including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. They discussed ways to keep up the long and mutually beneficial bilateral economic relationship, as well as potential collaboration in areas like the digital economy. DPM Gan also met business leaders in New York, and congressional leaders handling trade issues in Washington. He also visited an ST Engineering aerostructures factory in Maryland. The US administration was 'not in the mood to discuss any discount to the baseline tariff', DPM Gan said at a dialogue moderated by Mr David Rennie, The Economist's geopolitics editor. 'We also wanted to know whether the baseline tariff will stay at 10 per cent or will it be higher or lower? The answer was non-committal. They are still reviewing the tariff and, in time to come, they will make the appropriate announcement. So we just have to wait and see.' Top stories Swipe. Select. Stay informed. 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Pharmaceuticals and semiconductors, which are key exports from Singapore to the US, are currently exempt from baseline tariffs. But US President Donald Trump had earlier in 2025 threatened to end an exemption for pharmaceutical imports, saying tariffs would be imposed 'at a level that you haven't really seen before'. The US is a major market for Singapore-based drugmakers including American multinationals like Pfizer and Johnson & Johnson. DPM Gan said official-level discussions between Singapore and the US Department of Commerce, which commenced before his trip, are still ongoing. 'I can't go into detail because negotiation is ongoing and there's a bit of a confidentiality we need to maintain on both sides,' he said when asked what the US was looking to secure through these talks. He added that the US generally had concerns about what the country experienced during the Covid-19 pandemic, when supplies of critical pharmaceuticals were disrupted. 'They want to make sure that they have a secure supply line of pharmaceuticals. They do want to see whether they can onshore this production, so that they can produce (it) themselves. But they also know that it's not possible to onshore everything, because some of the raw materials are actually (from) outside of America,' he said. 'They do need to think about how they can work with partners, trusted partners, to make sure that their supply chain is secure and reliable. So that is what they are looking for in their partners, including Singapore,' he added. 'I think the administration's focus now is to finish the negotiation of reciprocal tariffs. Then it will start to engage countries on specific sectoral tariffs in pharmaceuticals and semiconductors.' DPM Gan said Singapore has yet to engage the US on the prospect of semiconductor tariffs . However, he added that discussions to preserve the country's access to artificial intelligence equipment and semiconductors are under way. Speaking at the same conference earlier in the day, Prime Minister Lawrence Wong said Singapore's trade and investment relationship with America, even with the tariffs, remains important. 'We would prefer to have zero tariffs of course, but if it is the baseline rate, then we are at the lowest category. We can live with it, and we can still do business and there will still be many opportunities for trade with the US, because whatever is happening in America now, the economy is still resilient, and there is still tremendous innovation happening in American companies, and so there will still be opportunities there,' he said. DPM Gan in his dialogue said the US economy continues to be relatively resilient. He said that based on the feedback from US businessmen he met on his trip, the outlook for the US economy seems cautiously optimistic, adding that Mr Trump's One Big Beautiful Bill , which includes tax cuts and business support measures, may have contributed to this. He said Singapore continues to have a good working relationship with the US. The US was Singapore's second-largest trading partner in 2024, while Singapore was its 16th-largest trading partner. Singapore was also the third-largest Asian investor in the US. More than 250 Singapore companies operate across 45 states, supporting around 350,000 jobs in the US, according to the Republic's Ministry of Trade and Industry. The US also has a longstanding trade surplus and free trade agreement with Singapore. The recent deals between the US and several countries, as well as the European Union economic bloc, are good news, DPM Gan said. 'This gives us a sense that there's good progress in the tariff negotiation. But I also come back with the sense that there remains significant uncertainty. I'm not sure whether the uncertainty has really been eliminated or even reduced,' he added. He cited the lack of clarity on the rules of origin that will be used to determine where products originate from. He also said it is unclear how reciprocal tariffs will be implemented, and how components from different countries and transshipped goods will be assessed. This comes on top of the uncertainty around sectoral tariffs, which are yet to be determined. There is also uncertainty about whether the investments that countries have pledged to the US under tariff deals are new contributions, or money that is currently invested in another country, DPM Gan said. 'For example, the EU has committed to make an investment... over a period of time. Japan has also committed investments into the US. Japan has been a major investor in Singapore. Whether the Japanese investment in Singapore will be diverted to the US is a question that is yet to be seen,' he said. 'There are (also) uncertainties as to how countries will respond to the outcome of the tariff negotiation. Some countries have also committed to purchase more from the US, and they would have been purchasing these products from other countries. Whether now, instead of purchasing from country A, country B, they will now purchase from the US, and therefore exports from these countries to affected countries will be changed,' he added. 'I think these uncertainties (are) second derivative uncertainties. No one is paying much attention yet, because we need to have a tariff settled, then we work out how the secondary impact would be.' Global supply chains will also be restructured if countries move their investments from destinations facing higher US tariffs to those facing lower tariffs, he added. 'The overall global trading system, what we call the rules-based multilateral trading system, that we depend on rules, respecting trade agreements with one another, and not change at will, is something that has been challenged,' DPM Gan said. 'Today, we can agree with one another on a certain tariff, but tomorrow, something happens. We start to change our tariff rate, and that is something that is very uncertain, and that has been seen over the last few months.'
Business Times
16 hours ago
- Business Times
Despite profit dip, Bursa Malaysia's IPO growth attracts Singapore firms' interest
[KUALA LUMPUR] Bursa Malaysia is emerging as a key listing venue for Singapore-based companies, even as the bourse operator reported a 19.3 per cent year-on-year (yoy) drop in net profit to RM125.5 million (S$37.8 million) for the first half of 2025. The exchange is seeing rising interest from Singapore companies seeking secondary or dual listings, buoyed by its strong performance in the Asean initial public offering (IPO) market. These developments come despite weaker overall trading volumes that have weighed on Bursa's financial performance. Fad'l Mohamed, chief executive officer of Bursa Malaysia, told a results briefing on Tuesday (Jul 29): 'We are seeing more interest from Singapore companies. One of them is UMS Integration , which will be listed on the main market... this Friday.' The high-precision engineering and manufacturing company is pursuing a secondary listing on Bursa Malaysia through an introductory route to broaden its investor base and boost stock liquidity. No new shares will be issued; instead, initial liquidity will be supported by a market-making arrangement involving shares borrowed from CEO Andy Luong. The listing's reference price will be pegged to UMS Integration's Jul 31 closing price on the Singapore Exchange, ahead of its debut on Bursa Malaysia on Aug 1. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Meanwhile, Oiltek International and Q&M Dental Group – also Singapore-based companies – have proposed secondary listings on Bursa as well. Precision manufacturing and assembly solutions provider Grand Venture Technology was also pursuing a secondary listing on Bursa's main market but halted the plan in June , despite receiving approval from Securities Commission Malaysia approval months earlier. 'Bursa Malaysia continued to top other bourses in Asean in the first half of 2025 across three key metrics of IPOs: number of IPOs, total IPO market capitalisation, and total IPO funds raised,' noted Fad'l. The exchange hosted 32 IPOs in H1, raising RM4 billion and posting a total IPO market capitalisation of RM17.4 billion. This compares with 21 IPOs and RM2.2 billion raised during the same period in 2024. According to Deloitte, Bursa Malaysia captured over 67 per cent of the IPO proceeds in South-east Asia , which overall had 53 IPOs and raised more than US$1.4 billion in H1 2025. 'We have a healthy pipeline of IPOs in the coming months and are well on track to achieve our annual target of 60 IPOs and RM40.2 billion in total market capitalisation by end-2025,' Fad'l added. Profit squeeze from lower trading activity Despite the strong IPO pipeline, Bursa Malaysia's financial results were hit by a downturn in trading activity amid global market headwinds. H1 revenue fell 7.8 per cent to RM357 million, dragged by a 15.5 per cent drop in trading revenue to RM213 million. Second-quarter net profit fell 29 per cent yoy to RM57.1 million, while revenue declined 13.9 per cent to RM172.6 million. 'Global developments, including the United States' ongoing tariff negotiations with its trading partners and persistent geopolitical tensions, impacted market sentiment and weighed on equity markets,' Fad'l explained. Securities market trading revenue dropped nearly 24 per cent to RM146.4 million, with average daily trading value down 24.8 per cent at RM2.5 billion. Trading velocity also fell to 32 per cent from 42 per cent a year earlier. Nevertheless, Bursa Malaysia declared an interim dividend of 14 sen per share, translating to a total payout of RM113.3 million, or 90.3 per cent of net profit – offering a yield of 3.7 per cent. Optimism for second half Bursa Malaysia's financial results for H1 2025 were impacted by a downturn in trading activity. PHOTO: BT FILE Despite the current conditions, Fad'l remains optimistic, anticipating improved market sentiment in the coming quarters. 'Funds are currently sitting on cash, but we anticipate they will start deploying it, capitalising on forward-looking catalysts and expected growth opportunities in 2026,' he said. He noted that the second half of the year will be the prime time for fund managers to capture the upside of 2026. 'With this elevated cash being injected into the market, it's set to propel the average daily trading value.' Citing analysts' estimates, he believes that the average daily trading value will increase to RM2.6 billion in H2. Therefore, Bursa is maintaining its 2025 profit before tax target at the RM369 million to RM408 million range, a key performance indicator. Derivatives, Islamic and data segments show growth Bursa's derivatives market revenue rose 8.1 per cent to RM56.1 million in H1, supported by active trading in crude palm oil futures. The exchange also relaunched its Single Stock Futures contracts in March with new specifications to widen its investor base. Revenue from the Islamic capital market jumped 23 per cent year on year to RM11 million, while non-trading revenue – covering listing, issuer and depository services – increased by 7.6 per cent to RM130.5 million. Data business revenue grew 6.4 per cent to RM40.5 million, driven by expanding licensing subscriptions and rising demand for high-quality, actionable financial and sustainability data. As at Jun 30, Bursa Malaysia's total market capitalisation stood at RM1.9 trillion, down 6.1 per cent from a year earlier.
