ADIA acquires 36% stake in Peruvian power firm

Abu Dhabi Investment Authority acquires 36% stake in Peruvian thermoelectric power company copy

Abu Dhabi / WAM

Blue Bolt Limited, a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) has acquired a 36% stake in Fenix Power Peru, a thermoelectric power generation company in Lima, as part of a consortium transaction valued at US$786 million. The Peruvian investment fund SIGMA holds 13% of Fenix.
Fenix Power is a power generation company which owns a 570 megawatt combined cycle power plant in the district of Chilca, south of Lima. It is responsible for producing 10% of the energy currently consumed in Peru and is also recognised as the most efficient thermal power plant in the country.
First contact between ADIA and SIGMA was initiated in 2013 during the InPeru investment roadshow, arranged by the Trade and Investment Office of Peru in the UAE. The delegation, at that time the biggest from Latin America to visit the UAE, was headed by the Minister of Economy and Finance and the Governor of the Peruvian Central Bank, and included senior business executives from leading organisations representing Peru’s economic activity.
“This investment is testament to the strengthening of bilateral ties between the UAE and Peru,” said Alvaro Silva-Santisteban, Director of the Trade and Investment Office of Peru in the UAE. “We have received up to US$1.7 billion in investments from the UAE since 2010, making Peru the second biggest investment destination in Latin America, to our knowledge. The investment missions between Peru and the UAE play a critical role in showcasing the benefits and opportunities that we offer as a country, and in connecting potential investors to market opportunities.”
Today, Peru is considered one of the world’s leading emerging markets, with a solid recent history of economic stability based on an uninterrupted average annual growth over the past 15 years of 5.3% of its Gross Domestic Product, GDP.
Total exports from Peru to the UAE have increased by 700% between 2011 and 2014, and from 2014 to 2015 further growth of 30% was experienced.
“As a country, we have seen a significant increase in trade with the UAE over the last five years. This deepening of trade relations has opened a bigger window of opportunity for companies intending to be part of Peru’s economic growth, and has raised awareness of the ease of doing business in our country.
“Utilities and infrastructure are sectors in Peru that continue to gain the attention of international investors. We enjoy a consolidated advantage in energy costs on a regional level because of our high utilisation of gas and hydric energy. With the UAE aiming to become an international hub for renewable and low carbon energy technologies, we can understand why ADIA has harnessed an investment in a company like Fenix,” said Silva-Santisteban.

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