InterEnergy Group issues the first 144A/Reg S Project Finance Green Bond in Latin America for US$262

Posted on 2021-03-09

InterEnergy Group, an energy solutions provider with a presence in the Dominican Republic, Panama, Jamaica, and Chile, announced the successful issuance of green bonds by UEP Penonomé II, S.A. (“UEP II”) for a total nominal value of US $ 262.7 MM, guaranteed by Tecnisol I, S.A., Tecnisol II, S.A., Tecnisol III, S.A., and Tecnisol IV, S.A. (collectively, “Tecnisol”). UEP II owns the largest wind farm in Central America and the Caribbean, located in Panama, while Tecnisol operates four solar projects in the country, with a total capacity of 255MW.

With this transaction, InterEnergy advances its environmental goals and contributes to the Sustainable Development Goals (SDG) of the United Nations, especially the 7th goal focused on providing affordable and non-polluting energy through the development and financing of 100% renewable energy projects.

This international bond, issued under the 144A/Reg S Rules and due in 2038, is the first issuance of green bonds by a company in the private sector in Central America and the Caribbean.

During the placement process, offers were received for approximately US$535 million, which represents double the issued amount. This result was achieved thanks to the interest of 58 investors from several continents, including several of the world’s most important institutional, global, and regional accounts focused on emerging markets and “green” bonds.

Citigroup Global Markets Inc. acted as Structuring Advisor, Sole Global Coordinator, and Bookrunner. Banco General acted as local coordinator, while Global Bank provided reserve accounts letters of credit. The green bond is dual-listed in Panama and Singapore Stock Exchanges.

“We are proud and pleased with the successful issuance of the first green bond in the region. Citi’s work and the investors’ response endorse our track record and drive us to continue growing, to transform the energy sector, and to set precedents”, said Rolando González Bunster, Chairman and CEO of InterEnergy Group.

“We worked hard for more than a year to organize this issuance and to successfully optimize the financing structure of the solar and wind parks. We obtained a sound financing structure both in the interest rate and tenor”, said Andrés Slullitel, CFO of InterEnergy Group.