The company expects to utilise the after-tax proceeds from the transaction to trim its holding company debt.
Duke Energy president, CEO and chairman Lynn Good said: "Our strategic transformation is gathering more momentum as we exit the Latin American market to focus on our domestic regulated core business, which was bolstered by our recent Piedmont Natural Gas acquisition.”
Duke Energy International (ex-Brazil) is a major power generation and transmission company in Latin America, with presence in Peru, Chile, Ecuador, Central America and Argentina.
Its Latin American portfolio includes over 2,300MW of hydro and thermal generation, 730km of 220kV transmission lines and natural gas processing facilities.
I Squared Capital partner Adil Rahmathulla said: “The acquisition is consistent with our strategy of investing in select high-growth economies through companies that have a long track record of adhering to the highest standards of excellence.
“We are excited to expand our global portfolio of clean power generation with more than 4,500 megawatts of hydro, wind, thermal and solar power across the Americas, Europe and Asia.
“We continue to have a robust pipeline of opportunities thanks to the platforms we have developed globally and this investment will allow us to grow in attractive markets.”
The acquisition is expected to be completed in the coming months and is subject to customary closing conditions and approvals.
With offices in New York, Houston, London, New Delhi, Hong Kong and Singapore, I Squared Capital is an independent global infrastructure investment manager with focus on energy, utilities, and transport in the Americas, Europe, and select high growth economies.
Image: Duke Energy to sell Latin America businesses to I Squared Capital for $1.2bn. Photo courtesy of Duke Energy.
