AES Dominicana Secures US$500 Million International Bond

AES Dominicana has strengthened its financial position through a US$500 million international bond issuance, giving the energy company additional resources to refinance existing obligations associated with its operations in the Dominican Republic.

The seven-year notes carry a 7.75% interest rate and mature in 2033. The securities were issued by AES España B.V. and are guaranteed by Dominican Power Partners and AES Andres DR, two companies linked to AES’s power generation and energy infrastructure business in the country.

Financing Targets Existing Debt and Corporate Needs

The proceeds will be used primarily to refinance existing debt and for general corporate purposes. The transaction gives AES Dominicana greater flexibility in managing its financial obligations while maintaining access to international capital markets.

AES’s Dominican operations are centered on the Andrés and Los Mina generation facilities. Together, the plants have 679 megawatts of installed thermal capacity and supply approximately 16% of the country’s electricity demand, according to AES’s latest annual reporting.

Andrés also operates the Dominican Republic’s only LNG import terminal, with storage capacity of 160,000 cubic meters. The company has long-term contracts covering natural gas supply for its generation operations, linking the financing structure to infrastructure that plays a significant role in the country’s electricity system.

International Markets Provide Access to Large-Scale Financing

The transaction underscores the importance of international debt markets for major Dominican companies and infrastructure operators seeking long-term financing in U.S. dollars. AES Dominicana has previously used international capital markets, including a US$300 million notes offering in 2021.

The Dominican Republic’s corporate debt market remains smaller and less liquid than major international markets, making international issuance an important financing channel for large companies with dollar-linked revenues or significant infrastructure assets.

For AES Dominicana, the new bond provides a longer-term funding instrument while allowing the company to address existing obligations and preserve financial capacity for its operations and growth plans.

AES Maintains a Major Role in Dominican Energy

AES has maintained a significant presence in the Dominican electricity sector through its generation and natural gas infrastructure. Its Dominican portfolio includes the Andrés and Los Mina facilities, as well as infrastructure supporting the country’s growing use of natural gas for power generation.

The company’s latest annual report also identifies growing domestic natural gas demand as an important factor for its Dominican business. Andrés supplies regasified LNG to industrial users and third-party power plants, while AES has partnered with Energas to operate the Eastern Pipeline and related LNG infrastructure.

The US$500 million transaction therefore extends beyond a conventional refinancing operation. By replacing or restructuring existing obligations and securing funding through 2033, AES is positioning its Dominican business around a longer-term financial horizon while continuing to operate assets that are central to the country’s energy supply.

The financing comes as AES pursues a broader strategy of capital allocation and growth across its international portfolio. In the Dominican Republic, the immediate focus of the transaction is the refinancing of existing obligations and maintaining financial flexibility for the company’s ongoing operations.