Brookfield Renewable to Increase Stake in Colombian Hydro Assets

Brookfield Renewable will invest up to $1 billion to increase its equity interest to approximately 38% in Isagen S.A. E.S.P., a hydro asset owner and operator in Colombia. The transaction is expected to be immediately accretive to Brookfield Renewable's FFO per unit and will result in a stronger cash flow visibility with ~70% of the platform's generation contracted for an average of eight years. QIA will also invest approximately $500 million and increase its equity interest to approximately 15%.

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% [1]. This strategic move underscores the company's commitment to hydroelectric assets, which offer dispatchability and baseload characteristics, crucial in a renewable energy portfolio.

The investment will be immediately accretive to Brookfield's funds from operations (FFO) per unit, with an expected 2% accretion to 2026 FFO. The transaction highlights strong cash flow visibility, with approximately 70% of Isagen's generation contracted for an average of eight years [1].

Brookfield Renewable will fund the investment through non-recourse financings and available liquidity. Qatar Investment Authority (QIA) is also participating by investing $500 million to increase its stake to approximately 15%. The deal is expected to close in Q3 2025 [1].

This investment strengthens Brookfield's hydro portfolio and reinforces its position in Colombia's energy market. Isagen's development pipeline suggests potential for further growth, leveraging Brookfield's development expertise.

References:

[1] https://www.stocktitan.net/news/BEP/brookfield-renewable-to-increase-stake-in-a-strategic-portfolio-of-dbg3gvvfok8m.html