Bnamericas Published: Wednesday, November 22, 2023 <\/p>\n
IDB Invest release <\/p>\n
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. <\/p>\n
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. <\/p>\n
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. <\/p>\n
The new renewable energy projects will generate approximately 824 GWh per year helping to reduce the countrys 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. <\/p>\n
The project will contribute to the Dominican Republics 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). <\/p>\n
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IDB Invest Mobilizes the Largest Renewable Energy Financing in ... - BNamericas English<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Bnamericas Published: Wednesday, November 22, 2023 IDB Invest release IDB Invest provided a loan package of approximately $368 million to AES Dominicana Renewable Energy S.A. Continue reading