EGE Haina S.A., SGN Energía S.A., and Monte Rio Power Corporation LTD (the “Sponsors”) mandated CIFI Latam S.A. to structure a loan to build and commission a natural gas-fired generation plant owned by SIBA Energy Corporation, S.R.L. (“SIBA”). SIBA is a company created by a consortium formed by the Sponsors.
On December 19, 2022, the Fondo de Inversión Cerrado Libre para el Desarrollo de Infraestructuras Dominicanas I, managed by Sociedad Administradora de Fondos de Inversión Universal, S.A. (AFI Universal), closed the investment through the granting of RD$4.1 billion in Senior Debt to SIBA. CIFI Asset Management is in charge of supervising the loan in its capacity as funding manager.
Antonio Araúz, Investment Director of Structured and Corporate Finance at CIFI, explained that the plant would be developed in two phases. The first will have a capacity of up to 190.89 MW in a simple cycle, an estimated investment cost of US$238 million, and for which the financing has been structured. The second phase contemplates installing additional capacity to reach 256 MW to complete the combined cycle, with an estimated total investment of US$350 million. The first phase began in April 2022 and is expected to be completed in March 2023. CIFI is structuring additional long-term financing for the second phase to reach a total equivalent amount of up to US$270 million.
SIBA is developing the plant by awarding long-term power and energy contracts with the distribution companies (EDENORTE, EDESUR, EDEESTE) of the interconnected electrical system under an International Public Bidding (EDES-LPI-002-2021). The power plant is located in the Boca Chica Municipality in the Province of Santo Domingo.
SIBA’s generation plant is composed of turbines that operate with natural gas as the primary fuel, with the possibility of working with diesel and hydrogen, among other alternative fuels. The turbines were manufactured by Solar Turbines, a Caterpillar company, and consisted of 10 PGM130 model units and 2 Titan 250 model units. EGE Haina, the leading power generation company in the Dominican market, will operate and maintain the power plant.
This new project in the Dominican Republic is in line with the nature of the Fund, which is to promote structures that generate social value and sustainability. María Alejandra Vega, executive of CIFI’s ESG team, pointed out that electricity demand in this country has an accumulated growth of 12% compared to pre-pandemic values, and SIBA will contribute to guaranteeing the electricity required by the Dominican population. Cira Ugas, CIFI’s Project Lawyer, pointed out that SIBA has generated more than 400 jobs in the construction phase alone. She also stressed that this project contributes to the UN Sustainable Development Goals.
About EGE Haina S.A
Dominican electricity generation company with more than 20 years of working for the development and balance of the electricity sector. It is the leading mixed company (50% public – 50% private) in the country regarding assets, investment, and contribution to the State. EGE Haina has invested US$1.05 billion in power generation plants. In 2021, it became the first issuer of Green Bonds in the Dominican Republic Stock Market and the first Dominican issuer of a Sustainability-Linked Bond in the international markets.
About Fondo de Inversión Cerrado Libre para el Desarrollo de Infraestructuras Dominicanas I
AFI Universal and CIFI AM manage the Free Closed-end Investment Fund for the Development of Dominican Infrastructure I. Its objective is to capture investors’ resources and structure them into long-term investment-grade loans for financing infrastructure in the Dominican Republic. The fund is supported by 4 of the most prestigious Pension Fund Administrators in the Dominican Republic: AFP Popular, AFP Reservas, AFP Crecer, and AFP Siembra. The Fund has committed investments of DOP 14,000 million (close to USD 250 million). It has financed the Canoa Solar energy project, the Los Guzmancito wind farm, and the Blue Mall/JW Marriott Santo Domingo.
About AFI Universal
AFI Universal is the subsidiary of Grupo Universal approved to operate in the Dominican Stock Market through resolution R-CNV-2014-06-AF of April 4, 2014.
Backed by the experience and trajectory of more than 50 years of the business group, AFI Universal offers investment options to individuals and legal entities. It seeks to invest in a professional and diversified manner the resources of its clients. The products offered are Open and Closed Investment Funds, which invest in various assets and economic sectors. At AFI Universal, savers become investors and economic and social development promoters.
About CIFI Asset Management, Ltd.
CIFI Asset Management 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 portfolio management services for direct infrastructure lending in areas of high population growth while mitigating environmental, social, and governance risks.
CIFI is a non-bank financial institution with more than 20 years of experience in infrastructure and energy financing in Latin America and the Caribbean. Created in 2001, the company has analyzed more than 600 projects and has participated in more than 200 transactions for a value of more than US$1.8 billion. CIFI has become a leading participant in the trend toward sustainable infrastructure projects in Latin America and the region’s overall economic development.