Glenfarne secures $700m to fund power infrastructure

13 July 2018 (Last Updated July 13th, 2018 11:23)

US-based developer and manager of energy and infrastructure assets, Glenfarne Group, has secured up to $700m in capital for its subsidiary, EnfraGen for funding new investments in the Americas.

US-based developer and manager of energy and infrastructure assets, Glenfarne Group, has secured up to $700m in capital for its subsidiary, EnfraGen for funding new investments in the Americas.

EnfraGen, which focuses on the development, acquisition and operation of power and power infrastructure assets, will use the financing to fund its subsidiaries, Prime Energía and Fontus Hydro.

The proceeds will be used by Prime Energía to fund the construction of backup power plants in Chile and refinance existing debt.

"EnfraGen’s combined portfolio of operational and construction assets across its subsidiaries has increased to approximately 750MW in the Americas."

Fontus Hydro will use the proceeds to acquire three run-of-river hydroelectric power plants in Panama.

EnfraGen CEO Brendan Duval said: “Today’s announcement advances Glenfarne’s strategy of identifying and building specialised platforms in power and infrastructure across the investment grade Americas.

“Having the support and partnership of these new investors, in addition to our existing equity partners, validates Glenfarne’s expansion strategy for EnfraGen and positions us for success.”

With these new investments, EnfraGen’s combined portfolio of operational and construction assets across its subsidiaries has increased to approximately 750MW in the Americas.

A syndicate of banks led by Sumitomo Mitsui Banking Corporation (SMBC) and Natixis, and by funds managed by affiliates of Apollo Global Management (Apollo Funds) will offer the new financings.

SMBC and Natixis are serving as lead arrangers and book runners for a $400m syndicated senior secured loan to Prime Energía.

Apollo Funds will provide a $300m capital to EnfraGen that will be used to fund operational and construction assets as well as future expansions.