Enel Américas redirects funds from Peru to reduce debts and strengthen Brazil.

Enel Américas has made the strategic decision to allocate the funds from the sale of its assets in Peru to address and reduce its debts in Brazil. This measure is reflected in the company's semi-annual results, which have shown a clear focus on liability management and improving its financial situation in the South American market. Rafael de la Haza, Enel's Chief Financial Officer, emphasized that this financial restructuring is part of a broader plan aimed at optimizing the use of capital obtained from the transaction. During a recent conference with analysts, De la Haza stressed that the main objective of these funds is to tackle the company’s most expensive debt related to its operations in Brazil. The company has identified that its leverage in this country amounts to about 1.2 billion dollars, representing a significant challenge that Enel is determined to address. Enel has already initiated actions for managing liabilities totaling around 2 billion dollars, with partial execution demonstrating the seriousness of its commitment. The company's CEO, Aurelio Bustilho, complemented this information by announcing that Enel plans to allocate 2.5 billion dollars in investments in electrical networks between 2024 and 2026 in Brazil. This emphasis on infrastructure reinforces the idea that Enel is not only seeking to reduce its financial burden but also to expand and strengthen its presence in the Brazilian market. This capital injection is seen as a crucial step in the company’s growth strategy, particularly in a challenging economic environment. The sale of Enel's assets in Peru has become an important milestone for the company and has been well-received by analysts. In May, the British fund Actis completed the acquisition of 95.3% of Enel Generación Perú for approximately 1.3 billion dollars. This transaction not only represents a total enterprise value of 2.1 billion dollars but also provides Actis access to a robust energy generation portfolio, which includes over 2,200 megawatts of capacity across various plants, from wind and solar to hydroelectric and thermal power plants. As Enel focuses on restructuring its debt in Brazil, questions have also arisen about the new government and its openness to discussions on investment and energy regulation. Bustilho expressed optimism in this regard, acknowledging that while the challenges are significant, the signs of progress are encouraging. However, he also warned that solving deep-rooted issues in the system cannot be done overnight, reflecting the complexity of the regulatory environment in which it operates. This shift in Enel's focus towards Brazil has also been accompanied by the recent sale of shares in Enel Distribución Perú to the Chinese company Southern Power Grid International's subsidiary. This transaction, which involves 83.15% of the shares, underscores a broader trend of restructuring within the company and its search for capital to strengthen its base in selected markets. The use of funds generated from the sale of assets in Peru is not only a financial move but also represents a strategic shift for Enel in the region. The company is looking to establish a balance between divesting from less profitable markets and investing in areas with greater growth potential, such as Brazil. This could position Enel as a stronger and more competitive player in an ever-evolving energy market. Looking to the future, Enel has made it clear that its plan is to substantially reduce its debt in Brazil by 2026. This long-term commitment shows that the company is not only trying to resolve immediate issues but is also building a path towards greater financial and operational stability in the future. The clear direction that Enel has taken, along with its focus on infrastructure investment, may indicate a resurgence in its trajectory on the continent. Finally, Enel's decision to use the funds from the sale of assets in Peru to address its debt situation demonstrates a proactive and thoughtful strategy in a complex market. As the company continues its transformation process, its focus on Brazil and its commitment to infrastructure investment will be determining factors for its success in the coming years.