Fundraising

I Squared to pay $1.2bn for LatAm gas, hydro assets

The acquisition, which the firm will make via its Global Infrastructure Fund, will see it take over a portfolio spanning six Central and Latin American countries.

By
Zak Bentley
-

Investment manager I Squared Capital has agreed a $1.2 billion deal to buy all of US utility Duke Energy’s assets in the region, barring those in Brazil.

The New York-based firm will acquire a total of 2.3GW of hydropower, natural gas and transmission infrastructure in Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina via the ISQ Global Infrastructure Fund, which closed in April 2015 on $3 billion.

Upon wrapping up fundraising for the vehicle, I Squared partner Adil Rahmathulla had highlighted Chile, Peru and Colombia as countries in Latin America the firm would particularly like to invest in. I Squared owns more than 4.5GW of energy assets across Europe, Asia and the Americas.

Separately, Duke Energy agreed another $1.2 billion deal with China Three Gorges through which it will offload its 2.1GW of hydropower across 10 plants in Brazil to the Chinese state-owned power group. The deal cements China Three Gorges’ position as the world’s largest hydropower producer, owning over 100GW across 40 countries, according to the company.

The deals complete Duke Energy’s plan to sell off its international assets, announced earlier this year, which it launched in a bid to focus more on its domestic business. Both deals are expected to close within the next few months.