• The project supports AES’ decarbonization strategy in the Dominican Republic, displacing an estimated 441,000 tons of carbon dioxide equivalent each year.

IDB Invest provided a loan package of approximately $368 million to AES Dominicana Renewable Energy S.A. (ADRE), a subsidiary of The AES Corporation in the Dominican Republic, to finance the design, construction and operation of three new non-conventional renewable energy (NCRE) projects totaling 240MWac of installed capacity, and to refinance the short-term debt of three additional renewable energy projects totaling 150MWac of installed capacity.

The financing package consists of $37 million from IDB Invest and $331 million mobilized from 21 financial institutions. IDB Invest, together with Banco Latinoamericano de Comercio Exterior S.A. (Bladex), JP Morgan Chase Bank N.A. (JP Morgan) and The Bank of Nova Scotia (Scotiabank), led the underwriting process as joint lead arrangers and bookrunners. The transaction was 2.0x times oversubscribed with more than $485 million orders. This transaction is the largest financing for renewable energy projects for a Caribbean economy.

By expanding the NCRE generation capacity from 150MWac to 390MWac, the renewable energy projects are expected to help diversify the energy matrix in the Dominican Republic, where 71% of the energy generated in 2022 relied on fossil fuels. Additionally, the deal will support AES’ decarbonization strategy to achieve net zero carbon emissions from electricity sales by 2040.

The new renewable energy projects will generate approximately 824 GWh per year helping to reduce the country’s carbon footprint by displacing greenhouse gas (GHG) emissions estimated at approximately 441,000 tCO2 equivalent per year. This is equivalent to removing around 96,000 vehicles from the roads every year. It is also expected that the new NCRE projects will create around 1,300 jobs during construction and 80 permanent jobs during operation.

The project will contribute to the Dominican Republic’s goals in its nationally determined contribution (NDC) aiming to lowering GHG emissions by 27% by 2030. The deal will contribute to several of United Nations Sustainable Development Goals (SDGs): Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Responsible Consumption and Production (SDG 12), Climate Action (SDG 13) and Partnerships for the Goals (SDG 17).

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

About AES

AES' businesses in the Dominican Republic include a liquefied natural gas (LNG) regasification terminal with a 160,000M3 LNG storage tank, the 319 MW AES Andres combined cycle generator and 328-megawatt Dominican Power Partners (DPP) combined cycle generator, as well as an additional 150 megawatts of solar and wind energy, along with a relevant portfolio of growth in renewable energies. In 26 years of operations in the country, it has cultivated trust as an asset that is strengthened every day with the daily delivery of competitive energy to the National Interconnected Electricity System (SENI) to serve the three power distributors, with important alliances that reinforce its long-term vision and an investment portfolio of more than 2 billion dollars, which has represented savings of 3.5 billion dollars in new technologies and clean energy.