I Squared Capital jumps into market with $1.2bn acquisition

Duke Energy finalized the sale of its Central and South American energy assets for $1.9bn after transaction costs, including hydropower facilities, natural gas power plants, transmission lines and gas-processing operations. China Three Gorges will acquire 10 hydropower plants in Brazil for approximately $1.2bn, while I Squared Capital will acquire assets in Chile, Peru, Argentina, Ecuador, El Salvador, and Guatemala, also for $1.2bn.

As reported previously by Bloomberg, I Squared partner Adil Rahmathulla said the firm is looking to “take advantage of strong, macro fundamentals in Peru and Chile and the prospects for investments in renewables.” The deal gives the global infrastructure investor an “immediate scale and size” in the region, he said. “Building that from scratch would take a much longer time.”

The assets I Squared Capital is buying include hydroelectric and natural gas-fired power plants that can produce a total of 2,300 megawatts, transmission lines and gas-processing operations. The deal includes about $350 million in debt, Duke said.

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