Central America’s energy market got a fresh jolt late last year when renewable energy producer EnfraGen moved to expand its footprint in the region.
The company acquired assets in Costa Rica and Panama from Celsia, another regional player, in a transaction that closed in November 2023.The deal, which wins the award for Renewable Energy Financing of the Year, boosted EnfraGen’s total portfolio to 1,946 MW, expanding its role in Panama and extended its regional footprint to Costa Rica.
“The acquisition of the new portfolio of operating renewables reinforced to us the value in a diversified set of energy transition assets across different markets,” says Bryan Murphy, former President of EnfraGen. “We have found since closing that the new assets complement our existing portfolio very well.”
EnfraGen – owned in equal parts by U.S-based infrastructure developer/operator Glenfarne Group and Partners Group, a global investment firm – completed the transaction with a $1.04 billion hybrid facility that included a $725 million term loan, $200 million flexible facility, $75 million in a working capital facility and $50 million debt service reserve account.
The facility allowed EnfraGen to refinance its existing portfolio and acquire Celsia’s assets, which included the 119MW Dos Mares hydroelectric complex and 19.7MW in solar capacity in Panama, and the 49.5MW Guanacaste Wind Farm in Costa Rica.
Joint lead arrangers and joint bookrunners on the deal were BNP Paribas, Intesa Sanpaolo, JP Morgan, Mizuho, MUFG, Scotiabank, SMBC and Société Générale.
Murphy says the deal was an extension of the company’s landmark financing in 2020, when it raised $1.7 billion to refinance project debt. That agreement included $700 million in a 10-year 144A/Reg S bond and $1 billion in bank debt.
“We only had a few years left on the miniperm, so we decided that if we were going to borrow for this project it made sense to go ahead and refinance,” notes Murphy.
He says the acquisition would help EnfraGen’s financial performance and its goal of contributing to the region’s energy transition.
While expanding the portfolio in Panama was a natural next step, Costa Rica, which EnfraGen sees as a potential growth market, checked off all the boxes for the company, Murphy says. “We have grown in a world where energy transition is kind of the way of the world. These new assets are important, because they are a great fit. The assets in Costa Rica are very good and we are happy with the acquisition. We know that [the government] is considering power auctions and we would be interested in participating,” he says.
EnfraGen $1.04 billion Renewable Assets Acquisition Refinancing
Sponsors: EnfraGen, LLC; Glenfarne Energy Transition, LLC; Partners Group
Joint Lead Arrangers and Joint Bookrunners: BNP Paribas; Intesa Sanpaolo; JP Morgan; Mizuho; MUFG; Scotiabank; SMBC; Société Générale
Borrower’s Counsel: BLP; Claro & Cia; Global Market Attorneys; Gómez-Pinzón; Hogan Lovells; Arias; Paul Hastings; SIGMA International
Lenders’ Counsel: Alemán, Cordero, Galindo & Lee; Arias, Fábrega & Fábrega (ARIFA); Garrigues; Milbank; Morgan & Morgan; Philippi Prietocarrizosa Ferrero DU & Uría
All supporting financial institutions and law firms were transmitted to LatinFinance by the award category winners. For updates please email awards@latinfinance.com