Iberdrola and GIC to develop $472 million transmission network in Brazil

(Reuters) - Spanish energy group Iberdrola has signed an agreement with Singaporean investment firm GIC to develop a transmission network in Brazil for 430 million euros ($472 million), it said on Wednesday.

The two companies will co-invest in transport lines spanning 1,865 km (1,159 miles), with an average concession term of 25 years.

They also agreed to joint participation in future tenders for electricity transmission assets in Brazil, with GIC as Iberdrola's preferred partner for future auctions.

Iberdrola is vying to consolidate a position as one of the world's leaders in renewable power at a time when utilities are facing a challenging transition away from fossil fuels, accelerated by the need to cut energy dependence on Russia.

With this transaction Iberdrola reaches the asset rotation target announced at its capital markets day in November, the company said.

($1 = 0.9107 euros)

(Reporting by Matteo Allievi; Editing by David Latona and David Goodman)