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February 18, 2008 |
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AES GENER: Resumes US$350 Million Capital Increase AES Gener said in a filing with the Santiago Stock Exchange that it has resumed an up to US$350 million capital increase, which was suspended in December 2007. AES Gener told Dow Jones Newswires that it will ask its shareholders to authorize the capital increase at an extraordinary shareholders' meeting on March 8. Dow Jones relates that AES Gener called off on Dec. 19, 2007, an auction of about 540.4 million new shares on the local stock exchange in light of market volatility. The share package AES Gener was going to place represented the shares that parent AES Corp. chose not to subscribe to in the postponed 674.6 million- share capital increase. AES Gener told Dow Jones that proceeds from the bond issue will be used in funding expansion plans within Chile and to refinance debt. AES Gener is the second-largest electricity generation group in Chile in terms of generating capacity (20% market share) with an installed capacity of 2,428 megawatts. Gener serves both the Central Interconnected System or SIC and the Northern Interconnected System or SING through various subsidiaries and related companies, including affiliate Guacolda and the TermoAndes subsidiary. TermoAndes has a generation capacity of 642.8 megawatts, which while located in Argentina serves Chile's SING via InterAndes transmission line. Gener also participates in electricity generation in Colombia through Chivor hydroelectric plant of 1,000 megawatts, and a 25% participation in Itabo's facilities in the Dominican Republic (432.5 megawatts). Gener is 91.2% owned by AES (IDR rated 'B+' by Fitch). * * * To date, AES Gener carries Moody's Ba2 long-term foreign bank deposit rating with a stable outlook. The firm also carries Standard & Poor's BB+ long-term foreign issuer credit rating with a positive outlook. |
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