Bladex (Banco Latinoamericano de Comercio Exterior) announced the conclusion of a substantial financial arrangement, marking a significant stride in fortifying renewable energy initiatives in the Dominican Republic.
The closure encompasses a $368 million A/B Loan Facility, complemented by a $27 million Debt Service Reserve Letter of Credit Facility, under IDB Invest´s A/B Loan Structure.
Acting as Joint Lead Arranger and Bookrunner for the A/B Facility, Bladex spearheaded the structuring and syndication efforts alongside IDB Invest, JP Morgan, and Scotiabank. This strategic collaboration aims to refinance existing debts linked to three operational renewable energy projects, with additional funds allocated for the construction of three photovoltaic facilities. Anticipated to reach a total capacity of 390 MW by 2024, these endeavors signify a substantial leap in the country’s renewable energy landscape.
This marks the second co-led facility by Bladex for AES’ renewable energy ventures in the Dominican Republic, reinforcing the bank’s steadfast commitment to bolstering AES group’s initiatives within the region.
The Facility garnered immense support, witnessing a robust response during syndication, with commitments totaling US$482.5 million from 22 banks, marking a 2.2x oversubscription. The syndicate, comprising Latin American regional banks, Caribbean banks, an impact investor, and the Latin American branch of an Asian Bank, notably featured several of Bladex’s partner relationships.
Ivan Nunez, Head of Infrastructure and Project Finance at Bladex, expressed delight in supporting AES’ renewable energy pursuits in the Dominican Republic. He highlighted this transaction as a testament to Bladex’s prowess in project finance execution, solidifying partnerships with global players in power generation and distribution, and the bank’s robust appetite for infrastructure assets. Nunez emphasized that this Facility further bolsters Bladex’s track record, which boasts over 70 syndicated transactions in the Latin American Region.