AES Increases Green Financing to $2.7 Billion to Support Construction and Operation of Clean Energy Projects in the US

Arlington, VA (June 29, 2023) – The AES Corporation’s (NYSE: AES) US clean energy business announced that it has increased its three-year renewable energy construction warehouse credit facility by $800 million to $2.5 billion to support the company’s build-out of clean energy projects. AES also announced that it has successfully closed $246.5 million of senior secured private placement notes for its US-based clean energy business, bringing the financing total to more than $2.7 billion.

The construction warehouse credit facility will finance more than 3 GW of new clean energy construction over the next 12 months. This additional $800 million is the third financing round AES has conducted for the facility and builds on the initial $700 million raised in January 2022 and an additional $1 billion raised from September to November 2022, making it the largest warehouse financing structure closed to date for US renewable projects. It is also the first green financing transaction[1] closed in the US syndicated loan market to support financing capacity based on transferability provisions of the August 2022 Inflation Reduction Act.

The closing of the senior notes represents the second transaction done under AES’ Clean Energy Master Indenture Structure (MIS) and net proceeds will refinance four newly operational projects that were built using funds from the construction warehouse facility, which enables AES to recycle capital in support of its development pipeline.

“With the passage of the Inflation Reduction Act, the renewable energy sector and AES have entered a new era of growth,” said James Marshall, Chief Financial Officer, AES Clean Energy. “This financing arrangement will enable us to build out our current and future backlog of clean generation projects across the US. and it will allow us to ramp up construction of our diverse portfolio of clean energy projects in several key states.”

CIBC led both transactions, serving as Structuring Bank and Administrative Agent for the construction warehouse and as Ratings Advisor and Lead Placement Agent for the Notes, providing seamless execution across the broader financing for AES. Both deals were well received by the market, with 21 lenders participating in the warehouse syndicate and 14 investors allocated in the Notes issuance.

In addition to CIBC, the construction warehouse loan syndicate includes 20 other creditors: Banco Santander, BNP Paribas, Cadence Bank, Citibank, Credit Agricole, DNB Capital LLC, HSBC Bank USA, KeyBank, Mizuho Bank, Ltd., MUFG Bank Ltd., National Bank of Canada, Natixis, Rabobank, Silicon Valley Bank (a division of First Citizens), Societe Generale, SMBC, Standard Chartered, Truist, Wells Fargo and Zions Bancorp.

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit AES here.

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This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels, rates of return consistent with prior experience and the COVID-19 pandemic.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A: “Risk Factors” and Item 7: “Management’s Discussion & Analysis” in AES’ 2022 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company’s 2022 Annual Report on Form 10-K filed March 1, 2023, with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company’s website at www.aes.com.

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[1] As consistent with the Green Loan Principles established by the LSTA; available here.