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Denham Capital Commits US$250m to Ceiba Energy

14 January 2020

Private Equity firm Denham Capital, through its international power fund, committed US$250m to Ceiba Energy, which is an owner, developer and operator of renewable energy and natural gas assets in Latin America.

(Press Release) Denham Capital (Denham), a leading global energy-focused private equity firm, acting through its International Power Fund, is to make an initial commitment of USD250 million to Ceiba Energy (Ceiba), owner, developer, and operator of Latin American power generation assets.

The partnership with Ceiba will reinforce Denham Capital’s position as a leading investor in renewable and natural gas-fired Latin American power generation assets. Ceiba Energy’s management team brings more than 80 years of combined experience in power generation and related energy infrastructure in Latin America and emerging markets to the partnership. The Ceiba team has led the development, acquisition, operations, financing, and re-financing of over 50 Latin American power projects.

Denham’s strong balance sheet will enable Ceiba to develop, build, and acquire multiple renewable and low-carbon projects across the region. Ceiba’s objective is to provide efficient and competitive power solutions in each chosen focus market while delivering strong returns to its shareholders.

Ceiba looks for countries with stable regulatory frameworks where its management team has deep local knowledge and previously owned assets. Ceiba’s target markets include Mexico, Colombia, Brazil, Chile, Panama, and Peru. The Company is committed to growth through a combination of targeted M&A and brownfield & greenfield development.

Saurabh Anand, Managing Director in Denham’s International Power Team, says: “This partnership with Ceiba Energy brings to Denham an unparalleled combination of Latin American power experience. Ceiba has exceptional local and cross-border relationships, strong ties with lenders, a substantial target pipeline, and a strong track record in execution. They share our vision for sustainable growth and value creation and will complement Denham’s strong investment track record in Latin America. With this new venture, we are poised to remain power sector leaders in the region.”

Emilio Vicens, CEO of Ceiba Energy, says: “We are delighted that Denham has chosen to partner with us to develop and finance much needed power generation in growing Latin American markets. Denham’s capital resources, proven expertise, and established relationships throughout the global energy sector complement the Ceiba Energy team’s extensive background in power generation development, finance, and asset management. Together, we will be able to effectively leverage on our combined industry expertise, network of contacts, and financial strength.”