Brookfield Renewable said on Friday it will invest up to $1 billion to increase its equity stake in Colombian energy company Isagen S.A. to approximately 38%, expanding its footprint in South America’s renewable power market.
As part of the transaction, Qatar Investment Authority (QIA), an existing co-investor in Isagen, will also invest about $500 million, raising its equity interest in the company to around 15%. The deal is expected to close in the third quarter of this year.
Brookfield said the investment will be funded through a combination of proceeds from non-recourse financings at the business level and available liquidity. The company expects the deal to be immediately accretive to its funds from operations per unit, with anticipated growth of about 2% by 2026.
Isagen operates a portfolio of hydroelectric assets that provide stable and contracted cash flows, and maintains a pipeline of renewable energy projects to meet Colombia’s increasing power demands. Brookfield highlighted the value of hydropower’s dispatchability and scale in the energy transition and noted that roughly 70% of Isagen’s generation is contracted for an average duration of eight years.
Brookfield Renewable, one of the world’s largest publicly traded renewable power platforms, continues to build on its global portfolio, which includes hydroelectric, wind, solar, and energy storage facilities.
