Brookfield Renewable Energy Partners L.P, together with its institutional partners, is to buy a 57.6% stake in hydro operator Isagen from the Colombian government.

A Brookfield-led consortium agreed to acquire 1,570,490,767 common shares of Isagen for aggregate consideration of around US$2.2 billion, with an expected closing date of 26 January. Brookfield Renewable’s equity commitment will be approximately US$243 million giving it around a 9% interest in Isagen, the company said in a statement.

Under the deal, the consortium is also required to conduct two tender offers with respect to the remaining outstanding shares of Isagen. Assuming all remaining Isagen shares are sold to the Brookfield led consortium pursuant to these tender offers, Brookfield Renewable’s additional equity commitment would approximate US$517 million.

"We are extremely pleased to grow our business in Colombia, an attractive market with strong long-term growth fundamentals, a highly skilled labor force and continued need for new investment," said Sachin Shah, Chief Executive Officer of Brookfield Renewable. "This transaction aligns with our objective of building our global renewable energy business with high quality, predominantly hydro assets."

Isagen is the third-largest power generation company in Colombia with an installed capacity of 3032MW. The portfolio is comprised of six hydroelectric plants, and includes the country’s largest operating hydropower generating facility (San Carlos) and largest hydro-based reservoir by volume (Sogamoso). Average annual generation approximates 15,000GWh and accounts, on average, for approximately 20% of Colombia’s annual production.