Enel exits Peru, sells assets to China Southern Power Grid Co.

Enel SpA is selling distribution operations in Peru for about US$2.9 billion to China Southern Power Grid Co. The enterprise value for these assets is about US$4 billion, as part of Enel’s moves to cut its debt and reshape the company’s geographical presence. Enel’s strategic plan includes disposing of assets worth EUR21 billion, mainly in Latin America and Europe, while focusing on six major markets, including Italy, the US, and Brazil. The asset sale is expected to generate a reduction in consolidated net debt of about EUR3.1 billion in 2023, with a positive impact on net income of approximately EUR500 million.

Enel's exit from the Peruvian market is not yet completed as it still has a generation business in the country, with over 2 GW of installed capacity, where nearly half of it is renewable. Enel has more than 1.5 million customers in Peru, and the assets sold distributed 8,441 gigawatt hours in 2021.

Enel's debt ballooned to around EUR60 billion (US$65 billion) at the end of 2021 but the sale of the Latin American assets is expected to generate positive results on net income.