U.S. company acquiring Latin American hydropower assets

I Squared Capital, an infrastructure private equity firm based in New York, N.Y., is acquiring the Latin American and Caribbean businesses (LatAm Businesses) of Inkia Energy for US$1.2 billion.

The announcement came today from Singapore-based Kenon Holdings Ltd., which owns IC Power Ltd. Inkia Energy is a wholly-owned subsidiary of IC Power Ltd. IC Power is based and operates two non-hydro generation units in Israel through OPC Energy Ltd. OPC is not included in the acquisition, according to the announcement.

In addition to fossil fuel and wind generation facilities, I Squared Capital’s purchase also includes 754 MW of total combined installed hydropower capacity currently operating within Inkia Energy’s LatAm Businesses.

Inkia Energy is headquartered in Lima, Peru. The IC Power subsidiary has an operating capacity of about 3,436 MW from plants located in Bolivia, Chile, Colombia, Dominican Republic, El Salvador, Guatemala, Jamaica, Nicaragua, Panama and Peru.

Inkia’s hydropower assets include the 545-MW Cerro del Aguilla hydropower plant located in Peru. In Bolivia, Inkia Energy owns Compania Boliviana de Energia Electrica S.A. (COBEE).

COBEE owns and operates 14 run-of-river hydroelectric plants: 10 in the Zongo River valley and four in the Miguillas River valley, which have a total combined installed capacity of 209 MW.

Unrelated to today’s announcement, other hydroelectric projects under construction in Bolivia include 203-MW Miguillas and 124-MW San Jose. Planned hydro projects are 134-MW Banda Azul, 990-MW Cachuela Esperanza, 347-MW Carrizal, 3,676-MW Chepete-Bala, 280-MW Ivirizu, 132-MW Molineros, and 600-MW Rositas.

According to Kenon Holdings, as part of the transaction I Squared Capital will assume Inkia’s $450 million of bonds, which were issued esrlier this month.

During a meeting scheduled for Dec. 19, Kenon Holdings will ask its shareholders to ratify the sale by Inkia of its LatAm Businesses.

In related news, another U.S. company recently made plans to invest in hydropower in the Latin American and Caribbean region.

In October, HydroWorld.com reported that WRB Serra Partners achieved committed capital of $46.5 million through its WRB Serra Partners Fund I. The fund secured capital from a mix of family office and institutional investors and the U.S. Overseas Private Investment Corporation.

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Gregory B. Poindexter formerly was an associate editor for HydroWorld.com.

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