Energuate is the largest energy distribution company in Guatemala in terms of service territory and customers served with 91,557 kilometers of network length and over 2.3 million users. Energuate’s service area is predominantly rural with a significantly lower population density.

Energuate is indirectly majority owned and controlled by Nautilus Energy Partners (NEP). NEP is an investment platform focused on the energy sector in Latin America. NEP is indirectly majority owned by ISQ Global Infrastructure Fund I and ISQ Global Infrastructure Fund II (funds managed by I Squared Capital Advisors-“ISQ”). IFC is a minority shareholder.

ISQ is an investment adviser registered with the SEC that manages funds with investments focused on energy, utilities, telecom and transport. ISQ was founded in 2012 by Sadek Wahba, chairman and managing partner. ISQ is majority owned and managed by its partners.                                                                         

   The proposed investment entails a senior unsecured sustainability linked loan for up to US$100 million. IFC also expects mobilize up to US$75 million from other Development Finance Institution(s) to complement the financing. The loan proceeds will be used to finance part of Energuate’s investment plan for the period June 30, 2022 through December 31, 2025, which is mainly focused on: (i) enabling the interconnection of new users within Energuate’s distribution zone; (ii) energy loss control and reduction initiatives, and other improvements to the existing distribution network to increase its efficiency and reliability; and (iii) replacement of equipment, reconnections, and other business related investments. Use of proceeds will not be used for any potential investment related activities within Alliance for Zero Extinction (AZE) and UNESCO World Heritage biodiversity sites (either natural or combined natural/cultural sites).

    Regions under Energuate’s energy distribution authorizations, which cover 20 out of 22 departments in Guatemala.