Colombian Private Equity Firm Tribeca has announced its successful closing of the sale of its interest in Termocandelaria Power Limited (TPL) to a consortium of minority shareholders and institutional investors. TPL is the owner of Termocandelaria S.C.A. E.S.P. in Cartagena, and 57.38% of the shares of Termobarranquilla S.A. E.S.P. (TEBSA); two thermoelectric power generators located on Colombia’s Caribbean coast. Combined, they represent the fifth largest energy generator in Colombia, with respect to a combined installed capacity of 1.232 megawatts.
Above photo: Termocandelaria power plant in Cartagena
Tribeca invested in Termocandelaria in 2009 and Termobarranquilla in 2010. With an aggressive strategy of upgrading operations and efficiency improvements, this sale generated a 220% return on capital and a gross internal rate of return of 17% annually. With its 60.75% stake, Tribeca indirectly controlled the largest thermal energy portfolio in Colombia.
“This is our third successful exit this year, with which we have returned a total of $452 million USD to investors since 2007,” said Luc Gerard, Tribeca’s founder and CEO.
Termobarranquilla and Termocandelaria represent 13% of Colombia’s thermal and hydroelectric power capacity, and 27% of the thermal capacity. The largest, and one of the most efficient thermoelectric plants in the country, Termobarranquilla has a 918 megawatt capacity and produces approximately 40% of the energy needs of Colombia’s Atlantic Coast. Acting as a supplement, Termocandelaria generates 314 megawatts.
Tribeca is a private equity fund with approximately $400 million under management and a portfolio of 12 companies in infrastructure, health, natural resources, energy, and consumer goods. BNP Paribas and Banicol served as advisors on this sale.