I Squared looks to sell LatAm transmission portfolio

11 November 2019 - 12:00 am UTC

I Squared Capital Partners is looking to sell a portfolio of six electricity transmission lines in Peru.

Credit Suisse is advising on the sale of Orazul Energy Transmission, the holding company for the Inkia Transmission portfolio, and began sounding out potential bidders earlier this fall in a deal code-named Project Tarzan, SparkSpread has learned.

The Inkia portfolio consists of two subsidiaries, Etenorte, which operates three transmission lines in central and northern Peru with a combined length of 176km; and Eteselva, which has three transmission lines in central Peru with a combined length of 394km.

The unlevered portfolio generated USD 10.6m of EBITDA last year and provided USD 8.7m of dividends, according to a sale teaser.

I Squared Capital acquired the transmission assets, which have US dollar-linked contracted revenues, as part of its acquisition of Duke Energy’s Latin Amercia assets in December 2016.

I Squared is looking to sell the business, which has no employees, outright.

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