Duke Energy Sells Latin American Assets
I Squared Capital, an independent global infrastructure investment manager, has entered into an agreement with Duke Energy to purchase 100% of it Duke Energy International’s Latin American businesses (excluding Brazil) for $1.2 billion enterprise value.
The portfolio of assets to be purchased in this deal include over 2,300 megawatts of hydroelectric and thermal generation; 730 kilometers of 220kV transmission lines; and natural gas processing facilities. The assets are located in Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina.
Commenting on the transaction, Adil Rahmathulla, Partner at I Squared Capital, said: “The acquisition is consistent with our strategy of investing in select high-growth economies through companies that have a long track record of adhering to the highest standards of excellence. We are excited to expand our global portfolio of clean power generation with more than 4,500 megawatts of hydro, wind, thermal and solar power across the Americas, Europe and Asia. We continue to have a robust pipeline of opportunities thanks to the platforms we have developed globally and this investment will allow us to grow in attractive markets.”
Duke Energy CEO Lynn Good announced in February that Duke would get out of Latin America because of the volatile returns on those unregulated assets.