CPP Investments Backs Peru’s Inkia Energy in $3.4B Power Deal with I Squared

Canada Pension Plan Investment Board (CPP Investments) is doubling down on Latin American infrastructure, agreeing to acquire a 50% ownership stake in Inkia Energy at a total enterprise value of US$3.4 billion. The remaining 50% will be held by an I Squared Capital-led continuation vehicle. 

Inkia operates a diversified 2.6-gigawatt power generation portfolio in Peru through subsidiaries Kallpa Generación S.A. and Orazul Energy Peru S.A. CPP Investments and I Squared plan to jointly develop Inkia’s 4GW-plus pipeline spanning wind, solar, gas and battery storage projects. 

“Inkia operates a highly resilient power generation platform that aligns well with our long-term approach to investing in high-quality businesses that can deliver attractive risk-adjusted returns for the CPP Fund,” said Bill Rogers, managing director and head of Sustainable Energies at CPP Investments. 

I Squared has owned Inkia since 2017, expanding the platform’s Peruvian generation capacity from 1.6GW to 2.6GW while divesting non-core assets across 10 Latin American jurisdictions. 

“Inkia is a developer at its core and represents exactly the kind of essential infrastructure platform we seek to build and grow over the long term,” said Gautam Bhandari, global chief investment officer and managing partner at I Squared. 

I Squared manages more than $50 billion in infrastructure assets globally. The transaction remains subject to regulatory approvals and customary closing conditions.