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IC Power to sell 3.45GW power generating assets to I Squared for $1.2bn

EBR Staff Writer Published 27 November 2017

IC Power’s subsidiary Inkia Energy has agreed to divest all of its Latin American and Caribbean businesses, which includes stakes in 3.45GW of power generating assets, to infrastructure private equity firm I Squared Capital for $1.18bn.

Kenon Holdings, the owner of IC Power, says that the sale is part of its strategy to enable direct access to its shareholders to its businesses, which also includes monetization of its businesses.

IC Power is an Israel-based power generation company. Its current portfolio comprises 3.91MW of operating assets located in Israel and nine countries across the Latin American and the Caribbean regions.

All the Latin American and the Caribbean assets have been owned by IC Power through Inkia Energy.

The transaction will not include IC Power's Israel-based subsidiary OPC Energy which operates a 440MW combined-cycle power plant and an 18MW Steam Turbine in Israel.

In Peru, Inkia Energy has a portfolio of 2.2GW made up of the 1GW Kallpa natural gas-fired plant, the 545MW Cerro del Aguilla hydropower plant and the 632MW Puerto Bravo diesel-fired plant.

In Bolivia, Inkia Energy has 100% ownership in Compañía Boliviana de Energía Eléctrica, which holds a power generation capacity of 228MW through 15 hydroelectric and natural gas-fired plants.

In Chile, the company owns 211MW of generation capacity through a 153MW diesel-fired plant named Cardones and a 58MW gas-cum-diesel fired plant called Colmito.

Inkia Energy also has power generating assets across Dominican Republic (67MW), El Salvador (140MW), Guatemala (179MW), Nicargua (185MW), Panama (146MW) and Jamaica (60MW).

As part of the deal, the US-based I Squared will assume $450m of bonds of Inkia which were issued this month.

The sale will be based on meeting of customary closing conditions like the receipt of consents under debt facilities and other agreements among others.

According to Kenon, there are no conditions for financing or anti-trust approval and the deal is anticipated to be completed within the next several months.

Image: Inkia Energy to divest stakes in its hydro power plants and other power generating facilities across Latin America and the Caribbean. Photo: courtesy of a454/FreeDigitalPhotos.net.