Official Portfolio Link: https://www.energea.com/investment/48/
Finally! The delays are over, and it has been approved by the SEC. LATAM Energy is here! We have been chomping at the bit for this portfolio to be released since last year, and we are excited to be among the first investors.
The portfolio aims for a 10-12% IRR. You have heard us call this IRR the “sweet spot” before. As we release our March Tracker Notes and Portfolio Update, you will see that we will be pausing our investments in all other portfolios and focusing on funding LATAM. We like the diversification it will offer in the Columbian Peso currency and region. We will also be supporting bringing power to remote areas where it is non-existent.
So far, LATAM consists of a single project called Helios, which is debt financing over 15 years (180 months). Reading through the documents, we like the repayment structure, the interest rates of USD 15% and COL 18%, the term of 15 years, and the track record of Helios Energia since 2016. We feel these create a solid foundation to keep the portfolio steady.
Our concern, which frankly may be unfounded, is that the loan can expand to $100,000,000, which is half of the $200,000,000 LATAM portfolio goal. 50% in one item steps away from the diversity spread we like for risk management. Additionally, the scale is much larger than each project or debt release that has been the norm across the other portfolios.
We are curious to see how this develops and will adjust our investing strategy as the portfolio matures.
Let’s go LATAM!
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