I Squared Capital to acquire Inkia Energy for US$1.2 billion

ISQ Global Infrastructure Fund II, which is owned by I Squared Capital, an infrastructure private equity firm based in New York, is acquiring the Latin American and Caribbean businesses of Inkia Energy, a wholly-owned subsidiary of IC Power Ltd., for US$1.2 billion.

As part of the transaction I Squared Capital will assume Inkia's $450 million of bonds, which were issued earlier this month.

One of the largest independent power producers in Latin America, Inkia has a highly contracted portfolio of approximately 3.4 gigawatts of gross installed capacity in nine countries​.  This includes fossil fuel and wind generation facilities, and 754 MW of installed hydropower capacity.

Inkia Energy also owns Bolivan developer Compania Boliviana de Energia Electrica S.A. (COBEE). COBEE owns and operates 14 run-of-river hydroelectric plants: 10 in the Zongo River valley and four in the Miguillas River valley, which have a total combined installed capacity of 209 MW.

Adil Rahmathulla, Partner at I Squared Capital, commented,

“This transaction reinforces I Squared Capital’s commitment to infrastructure in Latin America. The Inkia portfolio comes with a highly seasoned and successful development team as well as a robust pipeline of renewable and natural-gas generation projects. We are excited to work with them to provide efficient, reliable and affordable electricity across the region.”

Credit Suisse and Norton Rose Fulbright acted as advisors to I Squared Capital. The sale is expected to close in the coming months, subject to customary closing conditions and approvals.