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Duke Energy closes sale of Latin American power business to I Squared Capital


According to Market Intelligence, December 2022


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Duke Energy closes sale of Latin American power business to I Squared Capital

Duke Energy Corp. has completed the sale of its Latin American power generation business to New York-based infrastructure fund I Squared Capital, a deal worth $1.2 billion in enterprise value.

Closure of the deal represents Duke's exit from the Latin American arm of its international business, which included a portfolio of thermal and hydroelectric generating assets totaling 2,300 MW, as well as transmission and natural gas processing assets. Those assets are spread across Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina. Duke expects that proceeds from the transaction will give it as much as $1 billion for general debt reduction purposes.

The second international segment, which contains 2,090-MW of power generation capacity in Brazil, is being sold to China Three Gorges Corporation for $1.2 billion, including assumed debt.

On the sale to I Squared, Duke CEO, President and Chairman Lynn Good applauded the speed of closing the transaction, which was announced in October.

"We are pleased to have closed this transaction so quickly," Good said in a Dec. 20 statement. "The sale of the Brazilian assets is expected to be completed in the near future."

By exiting the international business, Duke sought to align its strategic pursuits to expand its regulated operations in the U.S.

Still, Duke will maintain its 25% equity stake in National Methanol Co., a Saudi Arabia-based producer of methanol and gasoline additive methyl tertiary butyl ether.