AES Sheds Minor Portion Of Dominican Republic & Panama Businesses

The AES Corp AES disclosed a deal for minority sell-downs of its businesses in the Dominican Republic and Panama.

As per the deal, the company will sell 10% of its business in the Dominican Republic to Grupo Linda and Grupo Popular's subsidiary, AFI Popular.

The divested businesses include an LNG regasification terminal (capacity storage tank of 160,000m), the AES Andres 319 MW combined cycle gas turbine plant, DPP 328 MW combined cycle gas turbine, and an additional 150 MW of solar and wind power plants.

Apart from this, the asset divestiture also comprises 20% of AES Colón in Panama to Grupo Linda. 

The transaction is a part of the existing partnership expansion with Grupo Linda and the new collaboration with AFI Popular through one of its closed-end funds. 

The sell-down agreements will offer collective proceeds of $190 million to AES, keeping it on track to achieve its asset sale proceeds target for the year. 

With these transactions, AES has secured all planned external funding for 2023, including proceeds from these sell-down deals and other transactions disclosed this year - termination of the Warrior Run Power Purchase Agreement and senior notes issuance of $900 million.

"We take a strategic and systematic approach to asset sales. 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," stated Joel Abramson, AES Senior Vice President of Mergers & Acquisitions and Strategy.

Also Read: AES Chalks Out Long-Term Guidance, Plans To Exit Coal By End-2025

Price Action: AES shares are trading higher by 0.13% at $15.88 premarket on the last check Wednesday.