Strategic Investment Opportunity: Argentina’s Electricity Transmission Platform

Project Overview

A unique opportunity to gain indirect control in Argentina’s national high-voltage electricity transmission platform that forms a structural backbone of the Argentine Interconnection system. The platform is operating and maintaining extra-high-voltage transmission grid that connects major power generation centres with key consumption hubs across Argentina. The infrastructure has a long operational life, high barriers to entry, and functions under a regulated framework that supports predictable cash flows and low demand risk.

The said opportunity arises from a privatization process formally initiated by the Argentia government, creating a time bound entry point for global investors seeking exposure to regulated critical infrastructure assets.

Key characteristics of the asset include:

• Operator of the majority of Argentina’s extra-high-voltage electricity transmission network
• Mission-critical infrastructure with no viable alternative or competitive substitution
• Long asset life exceeding 40 years
• Regulated revenue model with stable demand fundamentals
• Indirect interests in regional transmission assets and international operations

Transaction

The transaction involves the sale of a controlling stake in the holding company that owns and controls Argentina’s national high-voltage electricity transmission platform. The divestment is being conducted through a national and international public tender, in accordance with Argentina’s privatization and public tender framework.

Investment Rationale

• Exposure to a natural monopoly infrastructure asset in Argentina
• Defensive, regulated cash flows with tariff normalization upside
• Privatization as a catalyst for governance, financing, and valuation re-rating
• Entry at a valuation below long-term economic value
• Ownership of irreplaceable infrastructure independent of demand cycles