The State Oil Fund of Azerbaijan (SOFAZ/ARDNF) has joined the investors of Inkia Energy, one of the leading power producers in Peru. The fund's financial participation was realized as part of a partnership with the international infrastructure investment firm I Squared Capital.
The entry of the Azerbaijani state fund into the structure follows a February 2026 agreement under which the Canadian pension fund Canada Pension Plan Investment Board acquired a 50% stake in Inkia Energy. The remaining 50% stake is managed by an investment vehicle of I Squared Capital, which also involves the State Oil Company of Azerbaijan Republic (SOCAR).
Inkia Energy boasts a diversified generation portfolio spanning hydroelectric power, natural gas, as well as solar and wind power plants. The total effective capacity of the company's assets reaches 2.6 gigawatts, covering roughly 22% of Peru's electricity demand. Additionally, Inkia's development pipeline includes over 4 gigawatts of new projects, predominantly consisting of renewable energy sources.
For Azerbaijan's sovereign wealth fund, this transaction reflects a strategy for geographic diversification of its investment portfolio. Investing in a company with natural gas and renewable energy assets expands the country's presence in the Latin American market and strengthens its role in international infrastructure projects.
The deal also opens a promising chapter in bilateral relations between Azerbaijan and Peru, which are approaching the 30th anniversary of establishing diplomatic ties. The entry of Azerbaijani capital into the Peruvian market could serve as an impetus for expanding trade cooperation and encouraging Peruvian companies to explore entry into the markets of Azerbaijan and the Eurasian region.
Source: news.day.az
