AES Announces Minority Sell-Downs of LNG Businesses in the Dominican Republic and Panama

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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SOURCE AES CORP.