Conduit Exits Mexico Asset

Regional infrastructure private equity specialist Conduit Capital Partners has completed the sale of the Libramiento natural gas compression facility and an associated 65km natural gas pipeline to InterGen. The total value of the transaction, which was originally announced in June, was $89.2m, excluding the assumption of non-recourse debt. Starting in 2005, Conduit worked with minority partners Green Energy and Infrastructura Para Energia to build, own and operate the facility and pipeline, located in Queretaro, Mexico. Since the project’s completion in 2007, it has had a long-term contract in place with Pemex Gas y Petroquimici Basica. Conduit’s financial partner was NordLB. The Libramiento investment was made in 2005 from Conduit’s Latin Power III fund, which closed in July 2006 at $392m. Latin Power III is 57% committed, with another 18% of the fund allocated to projects in development. In December 2007, Conduit sold Jamaica Energy Partners for $92.5m. Conduit is presently still investing from Latin Power III. “We continue to see demand for independent power production facilities and other infrastructure projects in Mexico and our other target countries, and we will continue looking for opportunities throughout Latin America and the Caribbean,” says Marc Frishman, a partner at Conduit.