EnfraGen Adds to Power Asset Portfolio with Acquisition in Colombia; Secures Investment from Partners Group
EnfraGens portfolio of operating and in-construction power assets now has a combined capacity of approximately 1.4 GW.
Add to the beginning of the headline: Glenfarne Affiliate
Add to the beginning of the first paragraph of release: Glenfarne Group ("Glenfarne") affiliate
The corrected release reads:
GLENFARNE AFFILIATE ENFRAGEN ADDS TO POWER ASSET PORTFOLIO WITH ACQUISITION IN COLOMBIA; SECURES INVESTMENT FROM PARTNERS GROUP
Glenfarne Group ("Glenfarne") affiliate EnfraGen LLC ("EnfraGen"), a developer, owner and operator of specialized power generation assets in Latin America, announced today the close of its acquisition of 100% of the shares of Zona Franca Celsia S.A. E.S.P. (“ZFC”), the owner of the Termoflores power plant (“Termoflores”), one of the largest gas-fired backup power plants in Colombia with 610 MW of capacity, via its subsidiary Prime Energía. EnfraGen’s portfolio of operating and in-construction power assets now has a combined capacity of approximately 1.4 GW. Following the acquisition, ZFC will be renamed Prime Termoflores S.A. E.S.P.
In conjunction with the Termoflores acquisition, Partners Group, the global private markets investment manager, has acquired on behalf of its clients a 50% equity interest in EnfraGen. Partners Group is an experienced investor in global infrastructure markets, with a focus on value creation opportunities and investments on behalf of its clients in power generation, energy and growth-oriented platforms.
Glenfarne formed EnfraGen in 2015 focusing on two specialties in investment grade countries in Latin America: grid stability assets, under the brand name Prime Energía, and value-added renewable assets, under the brand name Fontus. The Termoflores acquisition represents Prime Energía’s first step into the Colombian market. Prime Energía also owns and operates eight thermal back-up power generation assets in Chile. Fontus owns three hydropower assets in Panama and now has an expanding portfolio of solar assets.
“EnfraGen has pursued a focused and accretive growth strategy over the past several years, and I’m proud of this successive milestone as we continue to build a portfolio of power assets that will be integral to helping electricity grids across Latin America transition to renewable power,” said Brendan Duval, the Founder and Managing Partner of Glenfarne and Chief Executive Officer of EnfraGen. “Termoflores is an attractive asset crucial to national grid stability, particularly in this area of Colombia where we expect to see substantial energy consumption growth.”
Edward Diffendal, Managing Director, Private Infrastructure Americas, Partners Group, adds: "Latin America has experienced a rapid expansion of renewable energy sources, creating an increased need for grid stability. EnfraGen operates in a particularly attractive segment of this market, which benefits from structural renewable tailwinds and receives stable cash flows under long-term established capacity contracts. Back-up power generators such as EnfraGen play a critical role in reducing load imbalance in Latin America, and EnfraGen also provides reliable renewable energy to local communities."
EnfraGen expects to continue scaling with a goal of growing its existing portfolio to 2 GW in combined capacity.
“We are pleased to work with Partners Group to pursue our shared vision for EnfraGen as a preeminent power platform focused on grid stability and value-added renewable assets across investment grade Latin America,” said Brendan Duval. “We see a robust pipeline of opportunities to further build EnfraGen’s portfolio, and look forward to combining Glenfarne's and Partners Group's expertise and innovation to achieve this vision."
Paul Hastings served as US legal advisor and Gómez-Pinzón served as Colombian local legal advisor to EnfraGen. Bancolombia, Société Générale, Intesa, and Itau provided a senior secured term loan facility and a working capital facility to Termoflores in connection with the transaction.
About Glenfarne Group
Glenfarne is a privately held energy and infrastructure development and management firm based in New York City with offices in Panama City, Panama; Santiago, Chile; Bogota, Colombia and Houston, Texas. Glenfarne's seasoned executives, asset managers and operators develop, acquire, manage and operate energy and infrastructure assets throughout North and South America. For more information please visit www.glenfarnegroup.com.
About EnfraGen, LLC
EnfraGen is a privately held company which focuses on the development, acquisition and operation of power assets in the Americas. EnfraGen's divisions include Prime Energía, its grid stability business; and Fontus, its value-added renewable power business. EnfraGen's portfolio of operational and construction assets across its subsidiaries offers a combined capacity of approximately 1.4 GW as of September 2019. The company, including its affiliates and subsidiaries, is supported by a team of approximately 230 professionals. EnfraGen maintains offices and assets in Chile, Panama, Colombia and the United States, and is part of the Glenfarne Group, LLC family of companies.
About Partners Group
Partners Group is a global private markets investment management firm with USD 91 billion in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in Denver, Houston, Toronto, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Manila, Shanghai, Seoul, Tokyo, and Sydney. The firm employs over 1,300 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a major ownership by its partners and employees. www.partnersgroup.com
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