With Transactions, AES Secures All Planned
External Funding for 2023
ARLINGTON, Va., Sept. 26,
2023 /PRNewswire/ -- The AES Corporation (NYSE: AES)
announced today that it has agreed to minority sell-downs of its
businesses in the Dominican
Republic and Panama, as an
expansion of its existing strategic partnership with Grupo Linda and a new partnership with Grupo
Popular's subsidiary, AFI Popular, through one of its closed end
funds.
"We gain tremendous value from partnering with strong local
players who provide valuable support as we transition our
businesses in both markets," said Juan
Ignacio Rubiolo, AES Executive Vice President and President,
Energy Infrastructure Strategic Business Unit. "We have enjoyed a
productive partnership with Grupo
Linda since 2014, and we look forward to close collaboration
with AFI Popular as we continue to unlock new sources of
value."
The sell-down agreements will provide collective proceeds of
$190 million to AES, putting the
Company on track to achieve its asset sale proceeds target for the
year. As a result, AES has secured all external funding included in
its 2023 capital plan, which is comprised of the proceeds from
these sell-down agreements, plus those from other transactions
announced earlier this year, such as the Warrior Run Power Purchase
Agreement termination, and the issuance of $900 million of senior notes in May, priced at
5.450%.
"We take a strategic and systematic approach to asset sales,"
said Joel Abramson, AES Senior Vice
President of Mergers & Acquisitions and Strategy. "With these
transactions, we are not only executing on our asset sales program,
but also expanding local partnerships that support the strategic
objectives of our businesses to maximize value."
The agreements announced today include the sale of 10% of AES'
business in the Dominican Republic
to Grupo Linda and Grupo Popular's
subsidiary, AFI Popular. AES' businesses in the Dominican Republic include an LNG
regasification terminal, with a 160,000
m3 LNG capacity storage tank, the AES Andres 319
MW combined cycle gas turbine plant, DPP 328 MW combined cycle gas
turbine, as well as an additional 150 MW of solar and wind power
plants.
Today's announcement includes the sale of 20% of AES Colón in
Panama, also to Grupo Linda. AES Colón includes a 381 MW
combined cycle gas turbine with an adjacent regasification facility
that has a 180,000 m3 LNG
capacity storage tank.
About AES
The AES Corporation (NYSE: AES) is a Fortune 500 global energy
company accelerating the future of energy. Together with our many
stakeholders, we're improving lives by delivering the greener,
smarter energy solutions the world needs. Our diverse workforce is
committed to continuous innovation and operational excellence,
while partnering with our customers on their strategic energy
transitions and continuing to meet their energy needs today. For
more information, visit www.aes.com.
Safe Harbor Disclosure
This news release contains forward-looking statements within the
meaning of the Securities Act of 1933 and of the Securities
Exchange Act of 1934. Such forward-looking statements include, but
are not limited to, those related to future earnings, growth and
financial and operating performance. Forward-looking statements are
not intended to be a guarantee of future results, but instead
constitute AES' current expectations based on reasonable
assumptions. Forecasted financial information is based on certain
material assumptions. These assumptions include, but are not
limited to, our expectations regarding accurate projections of
future interest rates, commodity price and foreign currency
pricing, continued normal levels of operating performance and
electricity volume at our distribution companies and operational
performance at our generation businesses consistent with historical
levels, as well as the execution of PPAs, conversion of our backlog
and growth investments at normalized investment levels, rates of
return consistent with prior experience and the COVID-19
pandemic.
Actual results could differ materially from those projected in
our forward-looking statements due to risks, uncertainties and
other factors. Important factors that could affect actual results
are discussed in AES' filings with the Securities and Exchange
Commission (the "SEC"), including, but not limited to, the risks
discussed under Item 1A: "Risk Factors" and Item 7: "Management's
Discussion & Analysis" in AES' 2022 Annual Report on Form 10-K
and in subsequent reports filed with the SEC. Readers are
encouraged to read AES' filings to learn more about the risk
factors associated with AES' business. AES undertakes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except where
required by law.
Any Stockholder who desires a copy of the Company's 2022 Annual
Report on Form 10-K filed March 1,
2023 with the SEC may obtain a copy (excluding the exhibits
thereto) without charge by addressing a request to the Office of
the Corporate Secretary, The AES Corporation, 4300 Wilson
Boulevard, Arlington, Virginia
22203. Exhibits also may be requested, but a charge equal to the
reproduction cost thereof will be made. A copy of the Annual Report
on Form 10-K may be obtained by visiting the Company's website at
www.aes.com.
Website Disclosure
AES uses its website, including its quarterly updates, as
channels of distribution of Company information. The information
AES posts through these channels may be deemed material.
Accordingly, investors should monitor our website, in addition to
following AES' press releases, quarterly SEC filings and public
conference calls and webcasts. In addition, you may automatically
receive e-mail alerts and other information about AES when you
enroll your e-mail address by visiting the "Subscribe to Alerts"
page of AES' Investors website. The contents of AES' website,
including its quarterly updates, are not, however, incorporated by
reference into this release.
Investor Relations: Susan
Harcourt 703-682-1204, susan.harcourt@aes.com
Media Contact: Stephanie Cathcart 571-294-6824,
stephanie.cathcart@aes.com
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