CIFI structures financing of US$322.5 million for thermoelectric plant in the Dominican Republic

This CIFI release was published using machine translation.

Panama, June 2024 – The Inter-American Infrastructure Financing Corporation, SA (CIFI), commissioned by EGE Haina SA, SGN Energía SA, and Monte Rio Power Corporation LTD, has secured financing of US$322.5 million for the construction and operation of the SIBA Energy thermoelectric plant in the municipality of Boca Chica, Dominican Republic. This project is vital to improve the stability of the country's electrical system, especially during demand peaks, when other energy sources cannot cover it.

CIFI Services, SA led and executed a bridge financing that reached US$120 million, beginning in December 2022 with a contribution from the Free Closed Investment Fund for the Development of Dominican Infrastructure I, managed by AFI Universal and whose financing manager is CIFI AM , for US$72 million. These contributions allowed the construction of the open cycle of the SIBA plant, achieving a net installed capacity of 188 MWh. In addition, long-term financing of US$322.5 million was structured to repay the bridge loans and finance the construction of the combined cycle, increasing capacity to 258.4 MWh for a total investment cost of US$432.5 million.

The project, classified as a national priority by the Dominican government, is being developed in two phases. The first phase, started in April 2022, included the installation of combustion turbines with dual capacity for natural gas and diesel. This phase was inaugurated on February 23, 2023, and launched on May 30, 2023.

The second phase is currently under construction, and is expected to be completed in February 2025. This phase will add heat recovery steam generators, increasing the plant's total capacity by 70 MWh.

The long-term financing includes Stand By and working capital credit lines for US$22.5 million from Bladex and the participation of 12 banks, totaling approximately US$300 million. Among the participants are the Free Closed Investment Fund for the Development of Dominican Infrastructure I (US$72 million), Banreservas (US$60 million), Banco Múltiple BHD, SA (US$50 million), BHD International Bank (Panamá) SA ( US$10 million), Banco Popular Dominicano, SA (US$20 million), Popular Bank, Ltd. Inc. (US$20 million), Banco Múltiple Promerica de la República Dominicana, SA (US$15 million), St. Georges Bank & Company Inc. (US$10 million), Banistmo, SA (US$20 million), CIFI LATAM SA (US$17.45 million), Banco Ficohsa Panamá (US$5 million) and BPR Bank SA (US$0.55 million).

The SIBA thermoelectric plant generated 268,400 MWh in 2023, avoiding the emission of ~36 thousand tons of carbon into the atmosphere, thanks to the fact that gas generation is less polluting than other fossil fuel sources, and benefiting more than 160 thousand people with access to energy. During the operation of phase I and construction of phase II, approximately 185 workers, mostly from the area, will be hired.

María Alejandra Vega, CIFI Senior ESG Officer, commented: “The SIBA project reflects the great work carried out by multidisciplinary teams of developers to meet high environmental and social standards.”

Antonio Arauz, Investment Director at CIFI, added: “Leading this project has been an honor and a privilege. The collaboration and effort of all those involved have been essential to materialize this challenge. A special thank you to EGE Haina, SGN and Monte Rio Power Corporation, as well as the dedicated team at SIBA, for their professionalism and determination throughout the entire process .”

The SIBA project contributes significantly to several Sustainable Development Goals (SDGs), in particular SDGs 7 (Affordable and clean energy), 8 (Decent work and economic growth), 11 (Sustainable cities and communities) and 13 (Action for the climate).

About Key Collaborators

• EGE Haina SA: Leading company in electricity generation in the Dominican Republic, with more than 20 years of experience, and investments exceeding US$1,050 million, it is the main public-private company in the country. Pioneer in the issuance of Green Bonds in 2021 in the Dominican market and Bonds Linked to Sustainability in international markets. egehaina.com
• Free Closed Investment Fund for the Development of Dominican Infrastructure I: Structured by CIFI AM and managed by AFI Universal, this fund has committed investments of DOP 14 billion (US$250 million) in infrastructure projects in the Dominican Republic.
• CIFI Asset Management Ltd.: It is an investment firm focused on debt financing of private middle market infrastructure projects in Latin America and the Caribbean. CIFI AM offers institutional investors diversified direct infrastructure loan portfolio management services in high population growth areas, while mitigating environmental, social and governance risks.