On December 13, 2005, AES Dominicana Energía Finance, a subsidiary of Andres, issued Senior Notes by US$160.0 million in the international market pursuant to Rule 144A and Regulation S of the SEC, and underwritten by ABN AMRO, with final single installment payment in December 2015 at 11% interest per annum. Interests are payable semiannually. The net proceeds of the Notes were used to: (i) repay the debt under Andres’ project financing, (ii) reimburse the security deposit made pursuant to the Gas Transportation Contract signed between Andres and DPP, (iii) fund the interest debt reserve, and (iv) pay financing fees and expenses.
The AES Corporation unconditionally and irrevocably guaranteed the due and punctual payment of the principal, interests, and any other additional amounts in respect of the Notes up to an aggregate amount of US$23.5 million. On March 3, 2006, AES also caused (i) DPP to unconditionally and irrevocably guarantee the Notes, jointly and severally with Andres, and (i) AES Cayman Islands Holdings, Ltd. to grant a first priority security interest on 100% of the outstanding capital stock of DPP. In August 2007, AES Dominicana Energia Finance S.A. repurchased US$4.0 million.
On November 22, 2005 the Dominican Republic Securities Superintendence (Superintendencia de Valores) authorized the issuance of Itabo’s Corporate Bonds up to a total amount of RD$1,000 million. On August 7, 2006, a first tranch of the bond was issued for an amount of RD$ 350 million, fully payable at maturity with a one-year tenor at a fixed rate of 16% per annum. This tranche was paid in August 2007
On October 5, 2006, Itabo Finance issued Senior Notes by US$125.0 million in the international markets pursuant to Rule 144A and Regulation S of the SEC, and underwritten by ABN AMRO, with final single installment payment in October 2013 at 10.875% interest per annum. Interests are payable semiannually. The net proceeds of the Notes were used to: (i) fund the interest debt reserve, (ii) pay dividends, and (iii) pay financing fees and expenses.
In August 2007 the "Superintendencia de Valores"of the Dominican Republic approved the issuance of of Andres’ Corporate Bonds up to US$25 million, and for an 18- months period. On September 26th, the first tranche of the local bonds was issued for US$5.0 millions, at a fixed annual rate of 7.75%. The second tranche was issued on December 5th, 2007 for US$10,4 millions, at a fixed annual rate of 7.25%.Finally, the third tranche was issued on June 24th, for US$9,596,000. The issuance was unconditionally and irrevocably guaranteed by DPP. All the tranches were paid.
The success of these instruments shows the confidence and trust of foreign and local investors in AES as an operator, and in the economic growth of the Dominican Republic.