Orazul Energia (IFC-38489)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
ORAZUL ENERGIA PARTNERS LLC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Hydropower
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Project Cost (USD)
$ 120.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 29, 2017

Disclosed by Bank Jan 25, 2017

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.
The proposed investment is an equity participation in a newly created vehicle (“Orazul Energia Partners LLC ”) with I Squared Capital, to acquire the assets of Duke Energy International, an energy platform, located in Peru, Argentina, Chile, and Ecuador (“Portfolio”). The Portfolio consists of over 1,600 megawatts of operating hydroelectric and thermal power plants, transmission lines and gas-processing operations. IFC Global Infrastructure Fund, LP, an investment fund managed by IFC Asset Management Company, LLC, a wholly owned subsidiary of IFC, will invest alongside IFC. IFC’s investment proceeds will be used to acquire and develop a portfolio of renewable power projects in Latin America. Through this investment, IFC will be supporting strategic partners which have demonstrated strong operational and management capacity in the power sector.
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Duke Energy Holdings Corporation (“Duke”) is a publicly-traded, diversified energy company headquartered in Charlotte, North Carolina, U.S., and is the largest North American utility company. Listed on the New York Stock Exchange (NYSE: DUK), Duke is a Fortune 250 company with a market capitalization of US$55.0 billion and an enterprise value of US$98.0 billion. Based on market capitalization, Duke is the world’s largest public utility and has an international presence in Latin America and the Middle East. The project sponsor is I Squared Capital (ISQ) an independent global infrastructure investment manager focusing on energy, utilities, and transport in North America, Europe, and select high growth economies such as India, China and Latin America. The Firm has a presence in New York, Houston, London, New Delhi, Singapore and Hong Kong. To complement its diversified portfolio of global infrastructure assets, ISQ is forming Orazul Energia Partners LLC based in the Cayman Islands to acquire the non-Brazil DEI assets in Latin America. The newly created holding company would be owned approximately 26% by IFC-GIF and 74% by ISQ. The proposed transaction consists of an equity investment by IFC and IFC Global Infrastructure Fund, LP, an investment fund managed by IFC Asset Management Company, LLC (a wholly-owned subsidiary of IFC) for up to $100 million in a newly created special purpose vehicle. With this investment, IFC and IFC Global Infrastructure Fund will acquire up to 26 percent of the Orazul Energia Partners LLC

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
ACCOUNTABILITY MECHANISM OF IFC The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works