The acquisition of Enel Generacion Peru by Actis was awarded the Utilities Acquisition of the Year in Latin America, with judges lauding it as a landmark deal.

One judge said: “This transaction is huge for Peru.”

With another member of the judging panel saying it is “transformational for the country”.

Indeed, the transaction marks the largest takeover bid on the Lima Stock Exchange.

Actis acquired Enel’s about 87% stake in Enel Generación Perú and 100% stake in Compania Energetica Veracruz for a total of $1.3 billion. The transaction is valued at a $2.1 billion enterprise value on a 100% basis.

Actis also acquired additional EGP shares from minority investors in the framework of a takeover bid on the Lima Stock Exchange, reaching a 95.3% interest in the company.

With the acquisition of Enel Generación Perú, Actis has gained access to a 2.2GW diversified energy generation portfolio in Peru with 12 operating assets and one more under construction. The portfolio includes a market-leading renewables footprint comprising wind and solar assets as well as hydro and thermal assets.

The Peruvian companies are now held in Actis Energy 5, a $6 billion vehicle launched in January 2020.

With the transaction, Actis takes over one of the largest renewable portfolios in Peru, consisting of 12 operating assets and a project under construction.

The assets include:

• wind – including Wayra I wind farm (132.3MW) in Marcona
• solar – including Rubí solar farm (144.48MW) in Moquegua
• hydro – including Veracruz hydroelectric plant (635MW) in Cajamarca
• thermal – including Santa Rosa (403MW) and Ventanilla (472MW) thermal power plants in Lima and Callao

Actis said it plans to expand the platform and accelerate its growth in renewables to capture market opportunities.

The financing was structure as a:

• a 5-year $1.336 billion fully amortized acquisition term loan with an about 85% balloon payment at maturity
• a 5-year $50 million revolving credit facility

Actis was supported in its acquisition by the following banks:

• Natixis Corporate & Investment Banking – joint lead arranger (JLD) and bookrunner
• Banco Santander – JLD and bookrunner
• BBVA Securities – JLD and bookrunner
• Citigroup – JLD and bookrunner
• JPMorgan – JLD and bookrunner
• BNP Paribas – JLD
• Goldman Sachs – arranger

Adviser to the arrangers:

• Paul Hastings – legal 

Advisers to Enel:

• JP Morgan – financial
• Rebaza Alcázar & De Las Casas – legal
• Hogan Lovells – legal

Advisers to Actis:

• Goldman Sachs – financial
• Garrigues – legal
• Milbank – legal
• PSR – market