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), have invested a combined US$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.
The financing package consists of a US$50 million equity investment from IFC and a US$50 million equity investment from GIF, managed by AMC.
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. 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.
Adil Rahmathulla, Partner at I Squared Capital, said:
“We are honored to have IFC and GIF join us in this partnership to help grow Orazul Energy. 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.”
Gabriel Goldschmidt, IFC’s Head for Infrastructure in Latin America and the Caribbean said:
“IFC has a long history of helping to transform the energy matrix in emerging markets. “Latin America’s power sector is evolving quickly with the proliferation of new technologies, growing access to natural gas, and public sector reforms. With this investment, we are in a strong position to support a path toward a more sustainable, low carbon future.”
Orazul will contribute to this goal with its combination of renewable and flexible thermal (gas) portfolio and growth opportunities. These assets complement the inherent intermittency of wind and solar projects, thereby supporting their development.