CPP Investments has announced plans to acquire a 50% stake in Inkia Energy, a Peruvian power generation company, alongside I Squared Capital, for a total enterprise value of $3.4bn (11.41bn new sol).
The remaining stake will be held by a continuation vehicle led by I Squared.
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Inkia, which operates through subsidiaries Kallpa Generación and Orazul Energy Peru, manages a generation portfolio totalling 2.6GW.
The company is integral in meeting the energy needs of Peru, particularly given the demands of its prominent mining sector.
CPP Investments and I Squared aim to collaborate to develop Inkia’s pipeline of more than 4GW of solar, wind, gas and battery storage projects to facilitate the company’s future expansion.
CPP Investments Sustainable Energies head, managing director Bill Rogers said: “Inkia operates a highly resilient power generation platform that aligns well with our long-term approach to investing in high-quality businesses that can deliver attractive risk-adjusted returns for the CPP Fund.
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By GlobalData“The transaction reflects CPP Investments’ continued focus on long-duration power generation assets with strong governance and sustainability practices, alongside our experienced partner I Squared.”
I Squared Capital’s involvement with Inkia dates back to 2017. During this period, it supported Inkia’s growth into a diversified energy platform by divesting non-core assets in ten Latin American jurisdictions.
Consequently, Inkia’s Peruvian operations expanded from 1.6GW to the current 2.6GW. I Squared will maintain an active role in Inkia’s governance and strategic decision-making processes.
The completion of the transaction is contingent on satisfying closing conditions and obtaining necessary government approvals.
In October 2024, Inkia received environmental approval to expand its Sunny solar power plant from 228 megawatts-peak (MWp) to 338MWp, part of its plan to establish a solar hub in Peru.
