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I Squared-owned platform draws $100m in investments

IFC and the IFC Global Infrastructure Fund have injected equity into Orazul Energy Partners, an entity that came out of I Squared’s purchase of Duke Energy’s Latin America assets last year.

Orazul Energy Partners, a Latin American energy platform owned by I Squared Capital, has drawn $100 million in investments from the International Finance Corporation and a subsidiary fund.

The investments, coming from IFC and the IFC Global Infrastructure Fund, will support low-carbon and clean energy projects across Latin America. The IFC and GIF, which is managed by the IFC Asset Management Company, each invested $50 million in equity.

I Squared, a New York-based investment manager, had purchased the assets from Duke Energy International in a $1.2 billion deal announced last October, when the latter exited the Latin American market. Orazul holds power generation assets in Argentina, Chile, Ecuador, El Salvador, Guatemala and Peru.

“I Squared Capital sees strong growth potential for renewables in Latin America and the partnership will help provide cleaner and more reliable energy sources to the region,” said I Squared partner Adil Rahmathulla.

The New York-based firm made the purchases via the $3 billion ISQ Global Infrastructure Fund, adding 2.3GW of hydropower, natural gas and transmission infrastructure to its portfolio.

The IFC and GIF’s investments in the region include over 1.6GW of hydropower and thermal generation, with more than 80 percent coming from hydro, along with 730km of transmission lines and natural gas processing facilities.

“We see Orazul as the ideal base to develop a balanced power platform across Latin America, providing clean and economical power to fuel growth across the region,” said Viktor Kats, co-head of GIF.

The IFC, a member of the World Bank Group, has committed nearly $14 billion to power generation over the past seven years, a period during which two-thirds of its energy investments went into renewables. IFC Asset Management, a wholly-owned subsidiary which invests third-party capital, has raised $9.8 billion across 13 investment funds, according to the IFC.