Duke Energy International (DEI), a subsidiary of Duke Energy Corporation, has acquired CGE Group's Iberoamericana de Energia Ibener S.A. (Ibener) subsidiary in Chile, including hydroelectric generating assets with 140 megawatts of installed capacity, for $415 million.
"Chile is an attractive market to grow our business and these assets are an excellent addition to our existing South American hydroelectric power plants," said Andrea Bertone, President, Duke Energy International.
As part of the transaction, DEI has acquired two run-of-river hydroelectric powerplants – Peuchen and Mampil with combined installed capacity of 140 megawatts. The hydroelectric stations use the water from the Duqueco River (VIII region). The electricity generated from these stations feeds into the Central SIC grid at the Charrua 220 Kv transmission system.
Citigroup and Banchile Citi acted as DEI's advisors on the transaction. In the first quarter 2013, DEI expects to close on a secured financing from a group of local banks for around half of the purchase price.
"We will continue to evaluate additional growth projects in Latin American countries, like Chile, where there is strong growth potential and a stable regulatory system," added Bertone.
DEI has been operating in Chile since July of 2012, when it acquired the Yungay plant (formerly known as the Campanario plant), a 240 megawatt diesel generating facility. Chile is now the fourth largest country in terms of generating capacity for Duke Energy's international operations.