Brookfield Asset Management plans on expanding HQI Transelec Chile, the Chilean transmission company it is purchasing from Hydro Quebec International and International Finance Corporation for nearly $2 billion.Jeff Blidner, managing partner of infrastructure at Brookfield in Toronto, says the consortium that acquired the country’s largest transmission business, which includes Canada Pension Plan Investment Board andBritish Columbia Investment Management, hopes to build out the operation but declined to provide further details. The acquisition is expected to close July 5.
Lincoln Webb, v.p. at British Columbia Investment in Victoria, says growth opportunities are present in Chile and the group is prepared to invest, but declined to disclose how much the consortium would shell out. The acquisition is being financed with about $1 billion in equity and a $600 million term loan led by Scotia Capital and HSBC Securities.
Transelec delivers electricity to over 99% of the Chilean population via 8,300 kilometers of lines and 51 substations.Jason Todd, analyst at Fitch Ratings in Chicago, notes that demand for electricity in Chile is growing.