IFC and AMC are giving a boost to a new Latin American player, who recently acquired assets in Chile, Peru, Brazil, Argentina, Ecuador, El Salvador, and Guatemala.
IFC, a member of the World Bank Group, and the IFC Global Infrastructure Fund (GIF), a fund managed by the IFC Asset Management Company (AMC), invested a combined $100 million in Orazul Energy Partners LLC, an affiliate of Orazul Energy Holdings LLC, an energy platform in Latin America owned by I Squared Capital. Orazul Energy’s growth will support a transition to lower carbon and cleaner energy sources in the region. Orazul Energy purchased the assets from Duke Energy International, as previously reported.
IFC and GIF have invested in assets in Argentina, Chile, Ecuador, and Peru with over 1,600 megawatts of installed capacity from hydropower and thermal generation, 730 kilometers of transmission lines, and natural gas processing facilities. Most of the energy output is from hydropower resources (81 percent), with the balance from thermal resources (19 percent). Orazul’s strong capabilities are expected to help incorporate more renewable power projects into the region to balance electric system loads and ensure continuous, reliable sources of electricity.
“We are honored to have IFC and GIF join us in this partnership to help grow Orazul Energy,” said Adil Rahmathulla, Partner at I Squared Capital. “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.”
“We are pleased to have had the opportunity to partner with I Squared Capital and IFC to invest in Orazul,” said Viktor Kats, Co-Head of the IFC Global Infrastructure Fund. “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.”
IFC is one of the world’s largest financiers in the power sector in emerging markets. It has committed nearly $14 billion over the past seven years to support power generation. During that period, IFC invested two thirds of its energy portfolio in renewable assets that displace carbon-intensive energy generation.
