Energuate

Energuate Image

Region

Latin America

Country

Guatemala

Sector

Energy

Deal type

Buy-out

Investment date

2011

Exit date

2016

Status date

Realised

Powering Guatemalan growth

Landscapes of dense forest and steep volcanoes scattered with Mayan ruins and vast lakes: the scenery of Guatemala offers a feast of photo opportunities for tourists but ensuring safe and reliable electricity distribution across such terrain is a more daunting prospect.

Energuate is the electricity distribution company taking on the challenge; supplying electricity to 20 of the 22 departments in Guatemala, covering 94% of the land mass and serving the country’s large rural population.

Actis acquired Energuate (formerly known as DEOCSA/DEORSA) from Gas Natural Fenosa in May 2011. The team drew on its experiences with Uganda’s electricity distributor, Umeme, to mould a vision for Energuate which includes improvements in customer service and Environmental, Social and Governance issues, the reduction of system losses and the connection of new customers. This investment will help drive Guatemala’s economic growth, much of which is expected to come from the urbanisation and development of areas outside Guatemala City. This transaction broke new ground in acquisition financing and is understood to be the first leveraged buy-out (LBO) in Guatemala’s history.

This investment reflects our confidence in Central America and exemplifies our Energy strategy. There is a significant and growing gap between the demand for and supply of new energy assets in the emerging markets, creating aUS$17 trillion investment opportunity to meet expected demand growth up to 2035.