Brookfield Renewable to Increase Stake in a Strategic Portfolio of Hydro Assets
Brookfield Renewable (NYSE: BEP) has announced plans to invest up to $1 billion to increase its equity stake in Isagen S.A. E.S.P. to approximately 38%. The strategic investment in Colombian hydroelectric assets will be immediately accretive to Brookfield's FFO per unit, with an expected 2% accretion to 2026 FFO.
The transaction highlights include strong cash flow visibility with ~70% of platform generation contracted for an average of eight years. Qatar Investment Authority (QIA) will participate by investing $500 million to increase its stake to approximately 15%. The deal is expected to close in Q3 2025 and will be funded through non-recourse financings and available liquidity.
Brookfield Renewable (NYSE: BEP) ha annunciato l'intenzione di investire fino a 1 miliardo di dollari per aumentare la sua quota azionaria in Isagen S.A. E.S.P. a circa il 38%. Questo investimento strategico negli asset idroelettrici colombiani sarà immediatamente positivo per il FFO per unità di Brookfield, con un'attesa incremento del 2% nel FFO previsto per il 2026.
Tra i punti salienti dell'operazione vi è una forte visibilità sui flussi di cassa, con circa il 70% della produzione della piattaforma contrattualizzata per una media di otto anni. Qatar Investment Authority (QIA) parteciperà investendo 500 milioni di dollari per aumentare la sua quota a circa il 15%. La chiusura dell'accordo è prevista per il terzo trimestre del 2025 e sarà finanziata tramite prestiti senza garanzie e liquidità disponibile.
Brookfield Renewable (NYSE: BEP) ha anunciado planes para invertir hasta 1.000 millones de dólares para aumentar su participación accionaria en Isagen S.A. E.S.P. a aproximadamente el 38%. La inversión estratégica en activos hidroeléctricos colombianos será inmediatamente beneficiosa para el FFO por unidad de Brookfield, con una acreción esperada del 2% al FFO de 2026.
Los puntos destacados de la transacción incluyen una fuerte visibilidad del flujo de caja, con aproximadamente el 70% de la generación de la plataforma contratada por un promedio de ocho años. Qatar Investment Authority (QIA) participará invirtiendo 500 millones de dólares para aumentar su participación a aproximadamente el 15%. Se espera que el acuerdo se cierre en el tercer trimestre de 2025 y se financiará mediante préstamos sin recurso y liquidez disponible.
Brookfield Renewable (NYSE: BEP)는 Isagen S.A. E.S.P.의 지분을 약 38%까지 늘리기 위해 최대 10억 달러를 투자할 계획을 발표했습니다. 콜롬비아 수력 발전 자산에 대한 이 전략적 투자는 Brookfield의 단위당 FFO에 즉각적인 긍정적 영향을 미치며, 2026년 FFO에 2% 증가 효과가 예상됩니다.
거래의 주요 내용은 약 70%에 달하는 플랫폼 발전량이 평균 8년간 계약되어 있어 강력한 현금 흐름 가시성을 제공한다는 점입니다. 카타르 투자청(QIA)은 5억 달러를 투자해 지분을 약 15%로 늘릴 예정입니다. 거래는 2025년 3분기에 완료될 예정이며, 비소구 금융 및 가용 유동성을 통해 자금이 조달됩니다.
Brookfield Renewable (NYSE : BEP) a annoncé son intention d'investir jusqu'à 1 milliard de dollars pour porter sa participation dans Isagen S.A. E.S.P. à environ 38%. Cet investissement stratégique dans des actifs hydroélectriques colombiens sera immédiatement bénéfique pour le FFO par unité de Brookfield, avec une augmentation attendue de 2% du FFO d'ici 2026.
Les points clés de la transaction incluent une forte visibilité des flux de trésorerie, avec environ 70% de la production de la plateforme contractée pour une moyenne de huit ans. La Qatar Investment Authority (QIA) participera en investissant 500 millions de dollars pour porter sa part à environ 15%. La clôture de l'accord est prévue pour le troisième trimestre 2025 et sera financée par des financements sans recours et la liquidité disponible.
Brookfield Renewable (NYSE: BEP) hat Pläne angekündigt, bis zu 1 Milliarde US-Dollar zu investieren, um seinen Anteil an Isagen S.A. E.S.P. auf etwa 38% zu erhöhen. Die strategische Investition in kolumbianische Wasserkraftanlagen wird sich sofort positiv auf Brookfields FFO pro Einheit auswirken, mit einer erwarteten 2%igen Steigerung des FFO bis 2026.
Zu den Highlights der Transaktion gehört eine starke Sichtbarkeit des Cashflows, da etwa 70% der Plattformerzeugung für durchschnittlich acht Jahre vertraglich gesichert sind. Die Qatar Investment Authority (QIA) wird sich mit einer Investition von 500 Millionen US-Dollar beteiligen, um ihren Anteil auf etwa 15% zu erhöhen. Der Abschluss der Vereinbarung wird für das dritte Quartal 2025 erwartet und soll durch nicht rückzahlbare Finanzierungen sowie verfügbare Liquidität finanziert werden.
- Investment will be immediately accretive to FFO per unit, with 2% accretion expected by 2026
- Strong cash flow visibility with 70% of generation contracted for 8 years
- Strategic expansion of hydro portfolio with stable and contracted cash flows
- Additional $500 million co-investment from QIA demonstrates strong institutional interest
- Significant capital expenditure of $1 billion required
- Geographical concentration risk in Colombian market
- Transaction subject to closing conditions and regulatory approvals
Insights
Brookfield's $1B Isagen stake increase strengthens its hydro portfolio with contracted, stable cash flows while being immediately FFO accretive.
Brookfield Renewable is making a strategic move by investing up to
The investment appears well-timed for several reasons. First, Isagen generates stable, contracted cash flows with approximately
The financing structure, utilizing a combination of non-recourse financing and available liquidity, allows Brookfield to leverage its strong balance sheet without overextending. Qatar Investment Authority's simultaneous
Strategically, this investment reinforces Brookfield's position in Colombia's energy market while increasing exposure to hydroelectric assets, which offer both renewable generation and the grid stabilization capabilities that will become increasingly valuable as more intermittent renewables come online. The mention of Isagen's development pipeline suggests potential for further growth beyond the existing asset base, leveraging Brookfield's development expertise.
- Brookfield Renewable will invest up to
$1 billion and increase its equity interest in Isagen to approximately38% - As part of this transaction, QIA, an existing co-investor in Isagen, will invest approximately
$500 million and increase its equity interest in Isagen to approximately15%
BROOKFIELD, News, July 18, 2025 (GLOBE NEWSWIRE) -- Brookfield Renewable (NYSE: BEP, BEPC; TSX: BEP.UN, BEPC) (“Brookfield Renewable”) today has announced that it will invest up to
Isagen generates stable and contracted cash flows from its large fleet of hydro assets. The business owns and operates an essential asset base, enhancing the reliability of Colombia’s power grid. In addition, Isagen also has a pipeline of renewable power projects, which we are well equipped to develop and bring into production to support Colombia’s growing power needs.
This transaction re-affirms Brookfield Renewable’s commitment to Colombia and will result in Brookfield Renewable’s ownership interest in Isagen increasing to approximately
The transaction is expected to be immediately accretive to Brookfield Renewable’s FFO per unit and is anticipated to be approximately
The investment will be funded through a combination of proceeds from non-recourse financings at the business and available liquidity. The transaction is expected to close in the third quarter.
As part of this transaction, Qatar Investment Authority (“QIA”), an existing co-investor in Isagen, will invest approximately
Brookfield Renewable
Brookfield Renewable operates one of the world’s largest publicly traded platforms for renewable power and sustainable solutions. Our renewable power portfolio consists of hydroelectric, wind, utility-scale solar and storage facilities and our sustainable solutions assets include our investment in a leading global nuclear services business and a portfolio of investments in carbon capture and storage capacity, agricultural renewable natural gas, materials recycling and eFuels manufacturing capacity, among others.
Investors can access the portfolio either through Brookfield Renewable Partners L.P. (NYSE: BEP; TSX: BEP.UN), a Bermuda-based limited partnership, or Brookfield Renewable Corporation (NYSE, TSX: BEPC), a Canadian corporation.
Brookfield Renewable is the flagship listed renewable power and transition company of Brookfield Asset Management, a leading global alternative asset manager headquartered in New York, with over
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This news release contains forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements can be identified by the use of words such as “will”, “expected”, “intend”, “potential”, “can” or variations of such words and phrases. Forward-looking statements in this news release include statements regarding the parties’ future expectations, beliefs, plans, objectives, financial condition, assumptions or future events or performance. Although Brookfield Renewable believes that such forward-looking statements and information are based upon reasonable assumptions and expectations, no assurance is given that such expectations will prove to have been correct. The reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors, including the ability of the parties to realize the expected benefits of the transaction, which may cause the actual results, performance or achievements of Brookfield Renewable to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.
Except as required by law, Brookfield Renewable does not undertake any obligation to publicly update or revise any forward-looking statements or information, whether written or oral, whether as a result of new information, future events or otherwise.
FAQ
What is the size of Brookfield Renewable's investment in Isagen?
How will the Isagen acquisition affect BEP's financial performance?
What percentage of Isagen's generation is contracted?
When will Brookfield Renewable's Isagen transaction close?
How much is QIA investing in Isagen alongside Brookfield Renewable?
How will Brookfield Renewable fund the Isagen investment?
