Brookfield Renewable boosts Colombian stake with $1bn investment
Brookfield Renewable has announced plans to invest up to $1 billion to increase its equity stake in Colombian hydroelectric company Isagen to approximately 38%, marking a significant expansion of the firm's presence in South America's renewable energy sector.
The transaction, expected to close in the third quarter, will see Brookfield Renewable strengthen its position in what it describes as a "strategic portfolio of hydro assets" that generate stable and contracted cash flows. Isagen operates an essential fleet of hydroelectric facilities that enhance the reliability of Colombia's power grid whilst maintaining a pipeline of renewable power projects to support the country's growing energy demands.
Qatar Investment Authority (QIA), an existing co-investor in Isagen, will simultaneously invest approximately $500 million to increase its equity interest to roughly 15%. The sovereign wealth fund's participation aligns with its commitment to supporting the global transition to a low-carbon future.
The deal represents a vote of confidence in Colombia's renewable energy market and is expected to be immediately accretive to Brookfield Renewable's funds from operations per unit. The company anticipates approximately 2% accretion to 2026 FFO per unit, supported by strong cash flow visibility with roughly 70% of the platform's generation contracted for an average of eight years.
Brookfield Renewable will fund the investment through a combination of proceeds from non-recourse financing and available liquidity. The transaction reinforces the company's commitment to Colombia whilst growing the proportion of cash flows from its hydro portfolio, which offers scale, dispatchability, and baseload characteristics increasingly valued in the renewable energy sector.
Brookfield Renewable operates one of the world's largest publicly traded renewable power platforms, with a diverse portfolio spanning hydroelectric, wind, utility-scale solar, and storage facilities across multiple continents.
