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Fund manager A.P. Moller Capital has completed its first investment in Kenya with the acquisition of the Nairobi-based 52.5MW thermal power plant, Iberafrica.

The fund manager acquired the plant from Independent Power Producer (IPP) from Naturgy. The acquisition of the entire issued share capital of Iberafrica, one of Kenya’s leading IPPs, is part of A.P. Moller Capital’s efforts to invest in infrastructure assets including power and energy in Africa.

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“Kenya is one of our focus countries with its sizeable, growing, and well diversified economy as well as its strategic location in East Africa. The transaction represents A.P. Moller Capital’s first investment in Kenya, where we are planning to be an active long term partner in the energy transformation, creating employment and driving foreign investments to advance the national development and growth agenda,” said Lars Reno Jakobsen, Senior Partner at A.P. Moller Capital.

Located in Nairobi’s industrial area, Iberafrica has provided baseload and reliable power to the grid since the start of its operations in 1997 and is operated by a highly experienced local management team with extensive knowledge of the Kenyan energy market.

Iberafrica sells electricity to the national utility Kenya Power and Lighting Company Plc under a long-term power purchase agreement. Naturgy is a pioneer in the integration of gas and electricity in Spain and Latin America.

A.P. Moller Capital, founded in 2017, is an affiliate of A.P. Moller Holding and was established to manage stand-alone funds focusing on infrastructure in growth markets. A.P. Moller Capital launched its first fund, The Africa Infrastructure Fund, in August 2017 to invest in infrastructure assets on the African continent with a focus on energy and transportation.