Active Mixed AidData Chinese Aid

Bank of China contributes to $369 million mini-perm IDB Invest A/B Loan for three new non-conventional renewable energy (NCRE) projects and refinancing purposes

$15.78M USD

Funder	Bank of China (BOC)
Recipient Organization	AES Dominicana Renewable Energy S.A.\|Agua Clara S.A.S.\|I.E. DR Projects I, S.R.L.
Country	Dominican Republic
Start Date	Nov 01, 2023
End Date	Jun 09, 2031
Duration	2,777 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`108995`

Grant Description

Bank of China contribution to USD 369 million mini-perm IDB Invest A/B Loan for three new non-conventional renewable energy (NCRE) projects and refinancing purposes in the Dominican Republic in 2023 In November 2023, AES Dominicana Renewable Energy S.A., Agua Clara S.A.S. and I.E.

DR Projects I, S.R.L. — three special purpose vehicles and wholly-owned subsidiaries of AES Corporation — signed a 7-year $369 million mini-perm IDB Invest A/B loan agreement with 22 banks and financial institutions to (a) finance the design, construction and operation of three new non-conventional renewable energy (NCRE) projects totaling 240MW of installed capacity, and (b) refinance the short-term debt of three additional renewable energy projects totaling 150MW of installed capacity.

The financing package consisted of a $36.8 million A Loan from IDB Invest and $331.4 million in B Loans from 21 financial institutions, including Banco Latinoamericano de Comercio Exterior S.A. (Bladex), JP Morgan Chase Bank N.A., The Bank of Nova Scotia (Scotiabank), Banco Aliado, Banco Continental SAECA, Banco General, Banesco, Banistmo, Bank of China, BHD International Bank, Banco Lafise Panama, CIBC, Banco Ficohsa, First Caribbean International Bank, Global Bank, ILX Fund I Sub-Fund A, Metrobank, Multibank, and Republic Bank.

The deal also include one-year $27 million standby letter of credit to support a debt service reserve account, $300 million in interest rate swaps, and $85 million in equity contributions from the sponsor.

AES Corporation has 700MW in thermal generating capacity in the Dominican Republic, as well as a storage facility, regasification plant, 50 kilometers of pipelines and a trucking facility. It sells part of the LNG it imports to other generating companies.

📋 Staff Comments

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.
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.
Pellerano Nadal served as lenders’ counsel. Paul Hastings served as sponsor’s counsel.
The precise monetary value of Bank of China’s contribution is unknown. However, it is known that IDB Invest contribution $36.8 million to the A Loan and 21 financial institutions (including Bank of China) contributed to the $331.4 million B Loans. For the time being, AidData assumes equal contributions ($15,780,952) across the 21 financial institutions. This issue warrants further investigation.

📚 Sources & References

Infrastructure Financing of the Year Caribbean - AES Dominicana Renewables Financing
Clifford Chance advises on largest renewable energy financing in the Caribbean
AES Dominicana
Agua Clara and DR Projects’s $450 Million Renewable Energy Projects in Dominican Republic
IDB Invest Mobilizes the Largest Renewable Energy Financing in the Caribbean for AES Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.