Private equity infrastructure fund I Squared Capital has announced its first direct investment in Brazil.
The company announced that it would acquire a 49% stake in Brazilian energy firm Origo Energia for up to $400 million. This is its first direct investment in Latin America's largest economy.
As per the companies, proceeds of the deal will be used to fund solar projects totaling more than 2 GW of capacity in 20 states across Brazil.
This means there will be an estimated capital expenditure of 6 billion reais ($1.23 billion), the company said in a statement.
To be noted, the Brazilian firm Origo “operates on a distributed energy generation model, building photovoltaic solar plants and offering quotas of the electricity produced to small- and medium-sized companies and homes,” the statement reads.
In return, the small- and medium-sized companies and homes will receive discounts on their energy bill.
So far, Origo Energia has over 100,000 customers and 300 megawatts-peak (MWp) in operational solar assets across several states in Brazil.