Mubadala Development Company, Abu Dhabi's state investment fund, said Monday that it will invest $2 billion in the EBX group of Brazil.
We are delighted to welcome Mubadala to Brazil through this landmark transaction, Mubadala's first significant direct investment into Brazil. This is the first time we have invited a strategic partner to invest at our holding company level,” said Eike Batista, the founder of EBX Group.
“The investment considerably strengthens the entire group and its ability to successfully implement current and future projects. Mubadala, after conducting thorough due diligence of our companies recognizes the great potential of our Latin American assets, he continued.
According to the joint statement made by Mubadala and EBX, the investment is in exchange of 0.63 per cent preferred equity interest in the Centennial Asset Brazilian Equity Fund. In addition, the agreement will give Mubadala participation in prospective investments of EBX.
Partnering with world-class companies is a key element of our investment and development strategy and we are proud to announce this partnership with Eike and EBX, one of Brazil's and the world's leading and most dynamic groups,” said Khaldoon Khalifa Al Mubarak, Mubadala CEO and Managing Director.
“This well-structured transaction marks our first significant direct investment into one of the fastest growing markets and is an important step in Mubadala's development of strategic opportunities in Brazil and Latin America,” he added.
Mubadala was established to help speed up the diversification of Abu Dhabi's economy. It is owned by the Government of Abu Dhabi and manages a multi-billion dollar portfolio of international investments.
EBX mainly invests in infrastructure and natural resources sectors and plans to invest $50 billion in the next 10 years in Brazil. OGX, which is a part of the EBX company that carries out activities in the exploration and production of oil and natural gas, has $29-billion market value.