Santo Domingo, Dominican Republic, February
21, 2013 – IFC, a member of the World Bank Group, and the IFC African,
Latin American and Caribbean Fund (IFC ALAC Fund), today announced a joint
$100 million equity investment to help InterEnergy Holdings (IEH) develop
cleaner and more efficient energy sources in the Caribbean and expand operations
in Latin America.
IFC and the IFC ALAC Fund, which is managed by the IFC Asset Management
Company, will each provide $50 million in equity to IEH, a company focused
on the power sector in the Caribbean and Latin America, and one of the
leading private investors in power generation, transmission and distribution
in the Dominican Republic.
“IFC’s equity investment together with the IFC ALAC Fund, is a natural
evolution of our long-term partnership with IFC, which was a lender to
IEH portfolio companies in the past,” said Rolando Gonzalez Bunster, IEH’s
Chairman and CEO. “We will work together to bring more reliable, cost-efficient
and cleaner energy production to the Dominican Republic and also plan to
be directly involved in the development of power sector solutions for Haiti,
facilitating economic development in the island of Hispaniola.”
IFC and the IFC ALAC Fund’s investments will help IEH expand and upgrade
its existing operations and develop new projects to diversify the Dominican
Republic’s energy sources, thereby reducing the country’s reliance on
fuel oil for power generation. These investments are expected to save fuel
costs by increasing the country’s capacity to import liquefied natural
gas, while also developing renewable energy sources, such as wind and solar
power. The high cost of energy and the need for power sector subsidies
has long been a significant constraint to the Dominican Republic’s economic
growth and macro-economic stability.
In addition, IEH plans to leverage its vast footprint in the Dominican
Republic as well as its team’s experience in the Caribbean and Latin America
to extend its reach into other markets in the region, thus strengthening
and diversifying its portfolio of assets. IEH is in discussions to make
important investments in Haiti, where it expects to play a significant
role in the development of the power sector in the future. The company
is also considering investments in other countries in the region.
“In the Caribbean power sector, IEH has an established track record of
achieving both high developmental impact and commercial success,” said
Jean Philippe Prosper, IFC Director for Latin America and the Caribbean.
“This investment fits with IFC’s strategy in the Caribbean to improve
competitiveness through improved access to infrastructure services, and
mitigate climate change by developing cleaner energy sources.”
Sujoy Bose, Chief Investment Officer and Head of the IFC ALAC Fund added,
“We are pleased to be investing in IEH to facilitate its expansion and
growth. IEH is embarking on an exciting future as it seeks to leverage
its existing distribution and generation assets by diversifying into more
efficient fuel sources which will lead to the reduction of its power generation
costs and thereby lower costs for the consumer.”
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.
About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests
third-party capital, enabling outside investors to benefit from IFC’s
expertise in achieving strong equity returns, as well as positive development
impact in the countries in which it invests. It manages over $4.7 billion
of capital across five investment funds.
About the IFC African, Latin American and Caribbean Fund
The IFC ALAC Fund is a $1 billion investment fund that invests alongside
IFC in equity investments in Sub-Saharan Africa, Latin America and the
Caribbean. It provides long-term growth capital for private enterprises
in these regions.
About InterEnergy Holdings
InterEnergy Holdings (“IEH") owns and operates power generation and
distribution assets in Latin America and the Caribbean. IEH is one
of the largest investors in the power sector of the Dominican Republic,
with controlling positions in Consorcio Energético Punta Cana Macao S.A.
(“CEPM”) and Compañía de Electricidad de San Pedro de Macorís (“CESPM”).
In addition, InterEnergy indirectly holds the largest economic interest
in Haina Investment Company, the private sector shareholder of Empresa
Generadora de Electricidad Haina S.A. (“EGE Haina”). IEH’s asset portfolio
represents more than 1,100 MW of combined installed capacity in the Dominican
Republic, with another 215 MW under construction. IEH, through its predecessor,
was also a pioneer in the use of renewable energy in the Dominican Republic,
by establishing the first wind power complex in the country, a partnership
between EGE Haina and CEPM with the Los Cocos and Quilvio Cabrera wind