Gas Natural Fenosa and KIA partner up through Wren House to develop international generation projects
- Through Wren House, the sovereign fund Kuwait Investment Authority (KIA) will underwrite a share capital increase of 550 million dollars to acquire 25% of Global Power Generation (GPG).
- The entry by the KIA into the shareholding of GPG will provide a benchmark investment partner to boost its international growth plans.
- Wren House Infrastructure Management, the manager of KIA assets, will manage this investment for the sovereign fund.
Earlier today, GAS NATURAL FENOSA and the Kuwait Investment Authority (KIA) signed an agreement to undertake a share capital increase of 550 million dollars in Global Power Generation (GPG), which will be wholly underwritten by KIA. Following this capital increase, the KIA will assume control of 25% of the energy group’s international power generation subsidiary.
GPG was set up by GAS NATURAL FENOSA in October to promote its international generation business and open up new markets, in line with the growth targets contained in its current strategic plan.
The operation, which is expected to conclude before the end of the year after obtaining the necessary authorisations, represents a partnership between the multinational power company and a sound investment partner for expediting the development of its international power generation expansion plans, which, for the medium term, include building an additional 5 GW of generation capacity in international markets, mainly in Latin America and Asia.
The Kuwait Investment Authority (KIA) is the oldest sovereign fund in the world and stems from the Kuwait Investment Board, set up in 1953. It is responsible for the management and administration of Kuwait's General Reserve Fund (GRF) and the Future Generation Fund (FGF), as well as other State funds in Kuwait.
Wren House Infrastructure was set up in 2013 to globally manage all infrastructure investments by KIA. The sovereign fund is focused on the long-term creation of a sustainable infrastructure platform and forms part of various projects as an investment partner
A generation company for growth in new international markets
With Global Power Generation, GAS NATURAL FENOSA aims to accelerate and enhance growth in its power generation business internationally, in those places where the need for new power generation is expected to concentrate in the near future. It has 2,866 MW of generation capacity in operation and a workforce of 800 professionals.
The company comprises all the group’s international power generation assets in Mexico (four combined cycle power plants and the Bii-Hioxo wind farm, representing the majority of GPG installed capacity); Costa Rica (the La Joya and Torito hydro power plants); Puerto Rico (combined cycle); Dominican Republic (thermal power plant); Panama (hydro power plant and thermal power plant); Kenya (thermal power plant); and Australia (wind projects under development).
Scope and subject: America, Financial, Generation
Barcelona, 30 March 2015