IIC Supports Energy Efficiency In Dominican Republic with A/B Loan and Subordinated Loan to LS Energía Dominicana, S.R.L.
Washington, D.C. - On November 22, 2011, the Inter-American Investment Corporation (IIC) approved a loan to LS Energía Dominicana, S.R.L. (LSED) in the Dominican Republic for up to US$45 million, comprising an A loan of up to US$5 million, to be financed by the IIC, a B loan of up to US$35 million, to be financed by participant financial institutions acceptable to the IIC, and a subordinated loan of up to US$5 million.
The proceeds of the loan will be used for the construction, start-up, and operation of a combined-cycle, natural gas-fired thermoelectric power plant with a capacity of up to 78 MW located in the municipality of Boca Chica.
José Tamayo, president of LSED, said: "We are very proud to be a leading company that promotes and develops energy efficient solutions worldwide and we appreciate IIC’s support. From Latin America to Africa, we’ve developed more than 2,200 MW using low emission generation equipment, improving the quality of life in the areas where we have a presence. In the Dominican Republic we face a threefold challenge: increasing the local generation capacity, diversifying the energy matrix, and reducing the emissions profile."
According to Rodrigo Navas, IIC senior investment officer in charge of the operation, "With this operation, the IIC is supporting the energy sector and promoting the use of renewable energy as an alternative to mitigate climate change and meet the growing demand for energy in the Dominican Republic. The project will have a positive impact on the economy, competitiveness, job creation, and the environment, because it reduces polluting gas emissions into the atmosphere."
LSED is a new company established to carry out a combined-cycle, natural gas-fired thermoelectric power plant with a capacity of up to 78 MW. LSED is a subsidiary of LS Energía Inc. de Panamá, which specializes in thermoelectric power projects in general and, in particular, generating plants fueled by diesel, bunker, or natural gas. For more information about LSED, visit www.lsenergia.com
About the IIC
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2010, the IIC reached US$1.4 billion in assets and approved 49 operations channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, visit www.iic.org
Contact: Rodrigo Navas
Telephone: (202) 623-3926