Glenfarne Group, LLC (“Glenfarne” or the “Company”), a developer,
owner-operator and industrial manager of energy and infrastructure
assets, today announced it has secured up to $700 million in capital for
its subsidiary, EnfraGen, LLC (“EnfraGen”), to fund new investments in
the Americas. EnfraGen focuses on the development, acquisition and
operation of high-value, long-lived power and power infrastructure
assets in the Americas.
The new financings will fund the growth of two EnfraGen subsidiaries,
Prime Energía SpA (“Prime Energía”) and Fontus Hydro, LLC (“Fontus
Hydro”). Prime Energía will use the proceeds to fund the construction of
backup power plants in Chile and refinance existing debt. Fontus Hydro
will use the proceeds to acquire three run-of-river hydroelectric power
plants in Panama. With these new investments, EnfraGen’s consolidated
portfolio of operational and construction assets across its subsidiaries
will total approximately 750 MW of capacity in the Americas.
The new financings are to be provided by a syndicate of banks led by
Sumitomo Mitsui Banking Corporation (“SMBC”) and Natixis, and by funds
managed by affiliates of Apollo Global Management, LLC (NYSE:APO) (the
“Apollo Funds”). SMBC and Natixis are acting as mandated lead arrangers
and bookrunners for a $400 million syndicated senior secured loan to
Prime Energía, with additional lenders expected to join the bank
syndicate in the coming weeks. The Apollo Funds are providing EnfraGen
with capital of up to $300 million to fund current operational and
construction assets and future expansions.
“Today’s announcement advances Glenfarne’s strategy of identifying and
building specialized platforms in power and infrastructure across the
investment grade Americas,” said Brendan Duval, Managing Partner of
Glenfarne and Chief Executive Officer of EnfraGen. “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.”
Prime Energía will use the proceeds to construct five new backup power
generation plants across Chile and to refinance its existing senior
debt. The construction will provide over 500 skilled engineering and
construction jobs across multiple regions in Chile. These new power
plants will support the growth and adoption of renewable energy onto the
Chilean electrical grid by providing backup power that addresses the
intermittent generation of renewables and transmission system outages
that cause supply/demand imbalances, ensuring stability of the grid.
Based on Prime Energía’s market research, an expansion of renewables
capacity requires a nearly equal expansion of backup capacity to support
the grid’s addition of renewable power sources.
These long-lived, low-risk assets, once complete, will increase Prime
Energía’s current capacity to 698 MW. Prime Energía currently owns and
operates three backup power plants and one solar PV plant in Chile.
The transaction represents the first acquisition for Fontus Hydro, whose
core business is to own and operate run-of-river hydroelectric power
plants. The acquisition includes three operating power plants in the
province of Chiriquí that are supported by contracted revenues. The
facilities also are able to sell power into the Regional Electricity
Market (“MER”), which comprises six countries in Central America that
share cross-border energy generation, contributing to a stable and
efficient grid that optimizes energy resources.
About Glenfarne Group
Glenfarne is a privately held energy and infrastructure development and
management firm based in New York City with offices in Panama City,
Panama and Santiago, Chile. Glenfarne’s seasoned executives, asset
managers and operators develop, acquire, manage and operate energy and
infrastructure assets throughout North and South America. For more
information please visit www.glenfarnegroup.com.
About EnfraGen, LLC
EnfraGen is a privately held company which focuses on the development,
acquisition and operation of power and power infrastructure assets in
the Americas. EnfraGen’s subsidiaries include Prime Energía SpA, its
backup power subsidiary; Fontus Hydro, LLC, its run-of-river
hydroelectric power subsidiary; and, Integrated Fibre, LLC, its biomass
energy subsidiary. EnfraGen’s portfolio of operational and construction
assets across its subsidiaries offers a combined capacity of
approximately 750 MW as of June 2018. The company, including its
affiliates and subsidiaries, is supported by a team of approximately 150
professionals. EnfraGen maintains offices and assets in Chile, Panama
and the United States, and is part of the Glenfarne Group, LLC family of
About Apollo Global Management, LLC
Apollo is a leading global alternative investment manager with offices
in New York, Los Angeles, Houston, Bethesda, London, Frankfurt, Madrid,
Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. Apollo had
assets under management of approximately $247 billion as of March 31,
2018 in credit, private equity, and real assets funds invested across a
core group of nine industries where Apollo has considerable knowledge
and resources. For more information about Apollo, please visit www.apollo.com.
About Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation is a Japanese banking corporation,
and a wholly owned banking subsidiary of Sumitomo Mitsui Financial Group
(SMBC Group). The Americas Division of SMBC Group has offices and
subsidiaries in New York, Houston, Los Angeles, Silicon Valley, San
Francisco, Chicago, Dallas, Toronto, Bogota, Leon, Lima, Mexico City,
Santiago, and Sao Paulo, and provides a broad range of financial
products and services through its international network. For more
information about SMBC Group please visit: www.smbcgroup.com.
Natixis is the international corporate and investment banking, asset
management, insurance and financial services arm of Groupe BPCE, the
2nd-largest banking group in France with 31 million clients spread over
two retail banking networks, Banque Populaire and Caisse d’Epargne.
With more than 21,000 employees, Natixis has a number of areas of
expertise that are organized into four main business lines: Asset &
Wealth Management, Corporate & Investment Banking, Insurance and
Specialized Financial Services.
A global player, Natixis has its own client base of companies, financial
institutions and institutional investors as well as the client base of
individuals, professionals and small and medium-size businesses of
Groupe BPCE’s banking networks.
Listed on the Paris stock exchange, it has a solid financial base with a
CET1 capital under Basel 3(1) of €11.7 billion, a Basel 3 CET1 Ratio(1)
of 10.7% and quality long-term ratings (Standard & Poor’s: A / Moody’s:
A2 / Fitch Ratings: A).
(1) Based on CRR-CRD4 rules as reported on June 26, 2013, including the
Danish compromise – without phase-in.
Figures as at March 31, 2018
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