EnfraGen, LLC (“EnfraGen”), a developer, owner and operator of specialized sustainable and renewable power and grid stability assets in Latin America owned by leading global private markets firm, Partners Group, on behalf of its clients, and Glenfarne Energy Transition, LLC (“Glenfarne”), a global energy transition leader providing critical solutions to lower the world’s carbon footprint, announced the successful completion of the acquisition of six assets in Panama and Costa Rica, with a combined capacity of 188 megawatts (“MW”) of renewable energy, from Grupo Argos (symbol: GrupoArgos) subsidiary Celsia S.A. (symbol: CELSIA), a Colombian electricity company focused on renewable energies and energy efficiency.
Concurrent with the completion of the transaction, EnfraGen also executed a refinancing of the Company’s main bank debt facility originally executed in December 2020.
Ed Diffendal, Managing Director and Co-Head of Private Infrastructure Americas at Partners Group, said, “The acquisition of these renewable energy assets will further diversify EnfraGen’s portfolio geographically and across asset types. We are proud to provide sustainable, lower carbon energy that benefits the Latin American communities and economies in which we operate.”
The renewable power facilities in the transaction are:
- Dos Mares Hydro Complex (“DMA”): three run-of-river (“ROR”) downstream hydro plants in Panama totaling 119.0 MW of installed capacity.
- Prudencia and Divisa (“Solar Plants”): two solar PV plants in Panama totaling 19.7 MW of installed capacity.
- Guanacaste Wind Farm (“PEG”): one wind installation located in Costa Rica totaling 49.5 MW of installed capacity, representing EnfraGen’s first wind and Costa Rican asset.
“We’ve successfully operated and optimized run-of-river hydro assets in Panama for over five years, and we are excited to expand our renewables portfolio into Costa Rica. With this acquisition, EnfraGen is one of the largest power generators in Panama, and we look forward to continued growth there and in other Latin American countries where we operate,” said Brendan Duval, CEO and Founder of EnfraGen and Glenfarne Energy Transition, LLC. “These assets will integrate seamlessly into EnfraGen’s existing renewable operations across the region and will immediately be accretive to EnfraGen’s balance sheet.”
The refinancing of the bank debt resets EnfraGen’s financing facility for a fresh 5-year legal maturity, resets the amortization profile to accommodate the new cashflow profile of the new assets, and implements a group of operational amendments to the credit agreement to optimize the facility after two years of managing the credit.
“The refinancing of EnfraGen’s bank debt facility under similar terms to what we transacted in December 2020 represents a great result for the Company and demonstrates continued strong support from the bank market for EnfraGen’s energy transition business and growth strategy,” said Bryan Murphy, President of EnfraGen. “We also believe our bondholders will find these acquisitions and refinancing a positive result for the Company.”
EnfraGen’s operational and in-construction assets now total over 2.1 GW of capacity across Chile, Panama, Colombia, and Costa Rica.
Paul Hastings LLP, SIGMA Law Firm in Panama, and Arias in Costa Rica acted as legal advisors for EnfraGen.
