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La Unidad de Negocios de CMI Energía se dedica al desarrollo, diseño, ejecución, operación y comercialización de proyectos de generación de energía eléctrica, con recursos renovables en la región centroamericana.

June 6, 2022 – S&P affirms Investment Energy Resources Limited (IERL) at BB-; Outlook Stable

Published:

15 June, 2022

06-Jun-2022 | 16:27 EDT Investment Energy Resources Ltd. 'BB-' Ratings Affirmed, Outlook Remains Stable
     
  • Despite payment delays from Empresa Nacional de Energía Eléctrica (ENEE), Honduras' state-owned electrical utility, we expect Investment Energy Resources Ltd. (IERL or the company), a holding company of renewable energy projects in Central America and the Caribbean, to continue generating stable and predictable cash flows due to its contracted nature and to maintain comfortable credit metrics aligned with the current financial risk profile and adequate liquidity.
  • On June 6, 2022, S&P Global Ratings affirmed its 'BB-' issuer-level rating on IERL with a stable outlook. We also affirmed the 'BB-' issue-level rating on the company's international bonds.
  • The stable outlook reflects our expectation of stable cash generation in the next 12 months, which should translate into gross debt to EBITDA of 4.5x-5.0x and funds from operations (FFO) to gross debt of 12%-15%.
 

SAO PAULO (S&P Global Ratings) June 6, 2022--S&P Global Ratings took the rating action described above. The rating affirmation reflects our expectation that IERL will continue generating relatively predictable cash flows thanks to its long-term and dollar-denominated power purchase agreements (PPAs). That, combined with low maintenance capital expenditures (capex), manageable debt servicing needs, and discretionary dividends will allow the company to keep gross debt to EBITDA in the 4.5x-5.0x range and funds from operations (FFO) to gross debt at 12%-15% in the coming years, aligned with our assessment of an aggressive financial risk profile.

 

We do expect delays from ENEE will result in higher working capital needs in 2022. However, we still view the liquidity position as adequate because of the following factors:

     
  • Stable capex requirements of up to $10 million in the next 12 months and smooth debt service with $30 million of principal coming due;
  • A comfortable cash position of roughly $124 million as of March 31, 2022; and
  • Ability to lower dividends because they're discretionary.
 

The payment delays from ENEE are attributable to the difficult financial situation of Honduras' energy sector due to high energy losses and delinquency rates, which the government is trying to address with an energy reform in the country, which includes bilateral negotiations of PPAs with private generators. This is still ongoing, and we're monitoring how it will affect IERL's PPAs in Honduras and the company's credit metrics. As a mitigating factor, IERL benefits from insurance that covers breach of contracts and expropriation in Honduras, provided by Multilateral Investment Guarantee Agency (MIGA), which we believe it would use only as a last resort.

 

IERL's term loan agreement includes maintenance financial covenants measured by gross debt to EBITDA of up to 5.25x in 2022, 5.20x in 2023, 5.15x in 2024, 5.0x in 2025, 4.8x in 2026, and 4.65x in 2027. If IERL breaches them, it would trigger an event of default. We're amending the covenant calculation because in our last report, published on June 18, 2021, we stated that the covenants were calculated on a net debt basis. Although we forecast tight covenant headroom of about 10% in the next couple of years--considering IERL's gradual deleveraging following the scheduled amortization of the term loan, and while the covenant's threshold narrows--we don't expect the company to breach them.

 

IERL's business risk profile reflects its smaller scale than that of peers and its exposure to high country risk in Central America, especially Guatemala (foreign currency: BB-/Positive/B), Honduras (BB-/Stable/B), Costa Rica (B/Stable/B), and Nicaragua (B-/Stable/B). These factors partly offset the attractive terms of IERL's dollar-denominated contracts, which have an average remaining term of about 13 years. Although there's some concentration among its off-takers, which are some of the largest electricity distributors in Central America, they're required to buy almost all the energy that IERL's assets generate, in line with the PPA terms.

 

We also consider the company's good diversification by asset type and its favorable location. IERL has 818.5 megawatts (MW) of installed capacity through 11 assets in six jurisdictions, and 40% of its installed capacity is hydro, 39% is wind, and 21% is solar. In our view, this allows for more stable cash flows, because hydro and wind generation typically show historically negative correlation. Also, the location of its assets allows IERL to post net capacity factors of 40%-43%. We view these factors, along with the company's relatively new and efficient asset base, as rating strengths because they allow IERL to post EBITDA margins in the 55%-60% range, which are higher and more stable than the regional peers' margins of 40%-50%.

 

ESG credit indicators: E-1, S-3, G-3

 

Environmental factors are a positive consideration in our credit rating analysis of IERL, which operates exclusively in renewable generation. The company plays an essential role in countries that are promoting the transition to unconventional renewables to replace existing carbon-based technologies. We believe that the company is diversified in terms of asset type (40% of EBITDA comes from hydro run-off river dams, 40% from wind assets, and 20% from solar farms), supporting stable cash flows.

 

Social and governance factors are moderately negative considerations due to IERL's exposure to high-risk jurisdictions, such as Guatemala and Honduras, given their weak institutional frameworks and problems related to income inequality. Nevertheless, these risks are partly offset by IERL's expertise in developing renewable energy in Central America and its ability to deal with several regulatory authorities.

 

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column.

 

European Endorsement Status Global-scale credit rating(s) have been endorsed in Europe in accordance with the relevant CRA regulations. Note: Endorsements for U.S. Public Finance global-scale credit ratings are done per request. To review the endorsement status by credit rating, visit the spglobal.com/ratings website and search for the rated entity.

 

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La Unidad de Negocios de CMI Energía se dedica al desarrollo, diseño, ejecución, operación y comercialización de proyectos de generación de energía eléctrica, con recursos renovables en la región centroamericana.

MARCH 23, 2022 – FITCH AFFIRMS INVESTMENT ENERGY RESOURCES LIMITED (IERL) AT BB-; OUTLOOK STABLE

Published:

15 June, 2022

RATING ACTION COMMENTARY

   

Fitch Affirms Investment Energy Resources Limited at 'BB-'; Outlook Stable

  Wed 23 Mar, 2022 - 4:28 PM ET
  Fitch Ratings - New York - 23 Mar 2022: Fitch Ratings has affirmed Investment Energy Resources Limited's (IERL) Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) at 'BB-'. Fitch also affirmed the senior secured green bonds at 'BB-'. The Rating Outlook is Stable.   The ratings reflect IERL's diversified portfolio of generation assets that span across Central America, mostly notably in Guatemala (BB-/Stable), which Fitch estimates cash flow from Guatemala sufficiently supports its cash flow profile and slightly offsets the company's high off-taker risk tied to governments in lower rated operating environments, such as El Salvador (CCC) and in Nicaragua (B-/Stable).  

KEY RATING DRIVERS

  High Off-Taker Risk: IERL's ratings reflect the company's high off-taker risk, where 46% of its revenues come from off-takers with a weighted average credit quality in line with a 'B+' rating. As of Dec. 31, 2021, 40% of consolidated revenues originated from contracts signed with distribution companies in Guatemala; 22% from Empresa Nacional de Energia Electrica (ENEE; not rated) in Honduras, 19% from Instituto Costarricense de Electricidad (ICE; B/Stable) in Costa Rica (B/Stable), 6% from contracts signed with distribution companies in Nicaragua (B-/Stable) and 3% in the Dominican Republic. As a contingent measure, IERL has the Multilateral Investment Guarantee Agency's insurance, which offers political risk insurance and enhancement guarantees on its generation assets in Honduras and Nicaragua.   Diversified Business Portfolio: IERL's diversified portfolio of renewable generation assets across Central America offset the idiosyncratic risk tied to government supported off-takers in lower rated environments and stabilize cash flow across technologies mitigating the risks of low hydrology or unfavorable wind conditions. The company has a portfolio of 818MW generation assets: 39% of which are hydroelectric plants, 21% solar (including 50% stake in the solar farms Bosforo -- 100MW -- and Cuscatlan Solar -- 10MW, both JVs with AES in El Salvador), and 40% in wind assets. The company's ratings are capped by the country ceiling of Guatemala   Predictable Cash Flows: IERL has predictable cash flows supported by long-term U.S. dollar-denominated contracts, and a low fixed marginal cost of production, given its concentration in renewables. As of YE 2021, the company's generation capacity was 93% contracted under power purchase agreements (PPAs) with a weighted average remaining life of approximately 13 years. Off-taker for the take-or-pay contracts are obligated to purchase 100% of generation. According to preliminary data, IERL's revenues were USD320 in 2021 (8% up compared to 2020), and EBITDA increased by 7% to USD187 million compared to 2020. Fitch's base case reflects that energy production will be close to 2.8GWh in 2022, assuming a blend of P50 and P90 scenarios for the solar and wind projects, and capacity factors that reflect historical average hydrology conditions in the case of Renace and Santa Teresa. Revenues under these assumptions may amount to USD322 million while EBITDA may reach approximately USD197 million in 2022.   Improving Leverage Profile: IERL's liability management exercise in 2021 materially improved its leverage profile. As of YE 2021, gross leverage, measured by total debt/EBITDA, was estimated to be 5.3x according to preliminary figures (2020: 6.2x). Fitch expects IERL's leverage to be close to 5.0x by end of 2022 and to deleverage toward 4.7x in 2024. The deleveraging trajectory is supported by the loan's programmed amortization schedule of about USD30 million per year, and by average annual EBITDA of approximately USD197 million between 2022 and 2024. Additionally, average FFO interest coverage may reach 3.0x between 2022 and 2024.   Strong Shareholder Group: IERL benefits from the strength of Corporacion Multi Inversiones (CMI) group of companies. CMI is a family-owned multinational conglomerate and one of the largest in Central America, with operations in 14 countries including the Caribbean and the U.S. Its operations span agribusiness, restaurants (including the global chain Pollo Campero), real estate, electricity generation and finance. CMI has shown commitment to developing its energy business unit and has made significant investments in this industry, while providing back-office support and access to credit to CMI Energia.

DERIVATION SUMMARY

IERL's 'BB-' reflects the company's diversified and complementary asset portfolio supported by exceptionally long-term U.S. dollar-denominated contracts, which mitigates its exposure to weak off-takers in challenging operating environments. Compared to AES Panama Generation Holdings, S.R.L. (AESPGH) (BBB-/Stable), IERL has a lower scale of operations but a better geographic diversification, which AESPGH compensates with a better off-taker risk profile, and both companies have similar leverage expectations. Compared to Orazul Energy Peru S.A. (BB/Stable), IERL has higher expected leverage and a weaker operating environment; compared to Nautilus Inkia Holdings SCS (BB/Stable), IERL shows similar leverage levels but modest capex investments and a more flexible shareholder strategy, a combination that should derive in positive FCF through the cycle.

KEY ASSUMPTIONS

--Average capacity factors for wind assets of 44% and 24% for solar, between 2022-2024; --Capacity factors that reflect historical average hydrology conditions, in the case of Renace of 44% and 41% for Santa Teresa, between 2022-2024; --90% contracted generation through the cycle; --Average monomic price of USD115/MWh over 2022-2024; --The loan has annual amortizations USD30 million 2022 and 2027 with a balloon repayment in 2028; --Average maintenance capex at USD9 million between 2022-2024.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive rating action/upgrade: --A material improvement in the company's operating environment; --Sustained gross leverage below 4.0x through the rating cycle.   Factors that could, individually or collectively, lead to negative rating action/downgrade: --A material deterioration in the company's operating environment and/or applicable CC; --Total debt/EBITDA of 5.0x on a sustained basis; --Significant lag in collections that weakens the company's liquidity position; --Sustained disruptions in generation capacity due to either technical or climatological issues.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: As of Dec. 31, 2021, IERL reported readily available cash and cash equivalents totaling USD77.2 million, which covers its short-term debt of USD30 million. Fitch estimates that IERL will be FCF positive through the rating cycle strengthening its overall liquidity.

ISSUER PROFILE

Investment Energy Resources Limited, (IERL) is the entity through which Corporacion Multi Inversiones corporate group (the CMI Group) owns the largest and most diversified private renewable energy portfolio in Central America and the Caribbean. IERL's utility scale operating assets are in Guatemala, Honduras, Costa Rica, Nicaragua and the Dominican Republic, and have an aggregate installed capacity of over 800MW, including hydro, wind and solar generation. In addition, IERL owns commercialization and distributed generation subsidiaries in Guatemala and El Salvador and has a 50% stake in 110MW utility-scale solar joint ventures with AES Corporation in El Salvador. ESG Considerations Investment Energy Resources Limited has an ESG Relevance Score of '4' [+] for GHG Emissions & Air Quality due to the company's advantage as a renewable generation company in Central America, which has a positive impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

Additional information is available on www.fitchratings.com

PARTICIPATION STATUS

The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer’s available public disclosure.

APPLICABLE MODELS

Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).

  • Corporate Monitoring & Forecasting Model (COMFORT Model), v7.9.0 (1)

ADDITIONAL DISCLOSURES

 

ENDORSEMENT STATUS

Investment Energy Resources Limited EU Endorsed, UK Endorsed

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La Unidad de Negocios de CMI Energía se dedica al desarrollo, diseño, ejecución, operación y comercialización de proyectos de generación de energía eléctrica, con recursos renovables en la región centroamericana.

FEBRUARY 10, 2022 – MOODY’S ANNOUNCES COMPLETION OF A PERIODIC REVIEW OF RATINGS OF INVESTMENT ENERGY RESOURCES LIMITED (IERL)

Published:

15 June, 2022

Announcement of Periodic Review: 

 

Moody's announces completion of a periodic review of ratings of Investment Energy Resources Limited (IERL)

 

10 Feb 2022

 

New York, February 10, 2022 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Investment Energy Resources Limited (IERL) and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 3 February 2022 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

 

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

 

Key rating considerations are summarized below.

 

Investment Energy Resources Limited's (IERL) credit profile reflects its diverse portfolio of renewable assets in Central America and the Dominican Republic that have demonstrated adequate operational performance in recent years. The credit quality also reflects the cash flow visibility, given that the assets are mostly contracted under long-term, fixed-price USD dollar denominated power purchase agreements (PPAs), with an average remaining life of more than 13 years. Balanced against these credit strengths, is IERL exposure to the relatively weaker credit quality of the PPA off-takers, where approximately 60% of the cash flows in 2020 derived from contracts with either B-rated counterparties or unrated companies that operate in countries in the B-rating range.

 

IERL's credit quality also incorporates relatively high leverage. Under Moody's base case, considering a P-90 generation scenario, projected financial metrics indicates an average ratio of cash interest coverage (CFO Pre-W/C+ interest)/interest and (CFO Pre-W/C)/debt of 3.0x and 12.0%, respectively, over 2022 -- 2024.

 

This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.

 

The principal methodology used for this review was Unregulated Utilities and Unregulated Power Companies published in May 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

 

This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.

 

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

 

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La Unidad de Negocios de CMI Energía se dedica al desarrollo, diseño, ejecución, operación y comercialización de proyectos de generación de energía eléctrica, con recursos renovables en la región centroamericana.

CORPORACIÓN MULTI INVERSIONES EARNS AWARD FOR ITS SUCCESSFUL PLACEMENT IN THE INTERNATIONAL GREEN BOND MARKET

Published:

12 June, 2022

Guatemala, June 8, 2022. CMI Energy, part of the CMI Capital Business Group of Corporación Multi Inversiones -CMI- received the Green Market Pioneer Award in 2021 in the seventh edition of the Climate Bonds Awards, for its commitment and innovation in the renewable energy financial industry. This international event, organized by the Climate Bonds Initiative, rewards leadership, best practices and innovation in green and sustainable finances.

 

Since 2016, the Climate Bonds Awards have honored 175 organizations that have shown leadership in financing low-carbon, climate-resilient projects in different countries and markets, based on 23 categories to evaluate participating businesses.

 

“This recognition fills us with satisfaction and allows us to reaffirm our commitment to continued growth and the creation of impactful investments that lead to the sustainable development of the countries and communities where we operate. Investing in renewable energy is, without a doubt, investing in integral sustainability. Therefore, it is essential to promote a reliable, affordable and decarbonized energy system to continue contributing to the social, economic and environmental growth of countries”, said Enrique Crespo, CEO of CMI Capital.

 

Therefore, CMI Capital remains faithful to its purpose of creating impactful investment that promotes sustainable development in projects and businesses, seeking to grow together with its employees, clients, suppliers and neighboring communities.

CMI Energy: leader in the renewable energy industry

CMI Energy owns and operates energy generation and marketing assets. It is the largest and most diversified private renewable energy generation company in Central America and the Caribbean. With the generation of more than 800MW, it operates in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and the Dominican Republic; with hydraulic, wind and solar technologies.

 

In 2021, CMI Energy successfully placed US$700 million in green bonds in the international market and closed a US$300 million syndicated loan to refinance all its project financing debt. In this way, CMI made its strengths as a group of business excellence and continuous growth more robust, with knowledge and experience in business operations in the region.

 

“The placement of US$700 million in green bonds was the largest to date by a renewable energy company in Central America and the Caribbean, marking the entry of CMI Energy into the international capital market with the largest and most diversified private markets, with a 100 percent renewable energy portfolio in the region,” assured Crespo.

 

After the placement of green bonds, CMI Energy continues with its objective of making sustainable investments that have a positive impact, thus highlighting its contribution to the reduction of greenhouse gas emissions and the decarbonization and diversification of the regional energy network with renewable energy in the countries where it operates.

 

This award is the result of CMI Capital's strong commitment to sustainability, including environmental, social and economic considerations, to promote well-being and security in the countries where it operates.

 

About Corporación Multi Inversiones -CMI-: Corporación Multi Inversiones is a multi-Latin family corporation that creates investment and employment in the region, made up of more than 40,000 employees and with operations in more than 15 countries, particularly in Central America and the Caribbean. Through its Business Groups: Capital and Food, it creates sustainable impact in the communities where it operates, offering excellence and quality in its products and services, consolidating itself as one of the most important business groups in Latin America. For more information, see: www.somoscmi.com

About CMI Energy: CMI Energy, a business unit of CMI Capital, stands out as the largest private renewable energy platform in the region, with a highly diversified portfolio across technologies and geographies, operating capabilities and track record, and its high and continuous commitment to sustainability. With operation of hydraulic power plants in Guatemala, Solar in El Salvador, Honduras and the Dominican Republic, Wind power in Honduras, Nicaragua and Costa Rica, it exceeds 800 MW of installed capacity. For more information, see: https://somoscmi.com/es/agrupaciones-de-negocio/cmi-capital

Limited Liability

This release includes forward-looking statements. These forward-looking statements involve risks, uncertainties and assumptions. CMI assumes no obligation to update or correct the information contained in this press release.

 

Awards Vídeo: Link

CMI Short Vídeo: Link

 

Press Contact

Gabriela Rivas

gabriela.rivas@somoscmi.com

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CMI ENERGÍA EXPANDS ITS PRESENCE AND CELEBRATES THE ACQUISITION AND OPENING OF ITS FIRST RENEWABLE GENERATION PARK IN THE DOMINICAN REPUBLIC

Published:

18 November, 2021

 

With this investment, CMI Energy, part of Corporación Multi Inversiones-CMI-, expands its presence and joins the interconnected national power grid, providing 50 megawatts of clean energy. With this investment, CMI Energy supports the Dominican Republic efforts to transition to a cleaner and more sustainable energy matrix.

 

 

Dominican Republic, November 04, 2021 - In order to continue consolidating and strengthening its growth strategy, CMI Energy – part of Corporación Multi-Inversiones (CMI)- announced the start of operations of its first renewable energy plant in the Caribbean. With a total capital investment of US$ 72.5 million and 50MW in contracted capacity, the solar park of Mata de Palma in the municipality of Guerra, province of Santo Domingo, joins the CMI Energy portfolio to generate a sustainable development impact in the Caribbean.

 

With the incorporation of Mata de Palma to CMI’s renewable energy generation portfolio, CMI Energy exceeds 800 MW of installed capacity through several renewable energy operations across 6 countries. Through the technological and geographical diversity of the company, with hydraulic generation in Guatemala; wind in Honduras, Nicaragua, and Costa Rica; and solar in El Salvador, Honduras and now the Dominican Republic -with Mata de Palma- CMI Energy has expanded its presence, positioning itself as the largest and most diversified renewable private generator in the Central American and Caribbean region.

 

Mata de Palma has more than 200,500 solar panels, and world-class technology, which has made it a point of reference in the country. Mata de Palma, which was developed by BAS Corporation and built by Dominion, allowed the creation of approximately 250 direct and indirect jobs, as well as subcontracting that allows the park's operation to meet international quality standards.

 

“With the acquisition and operation of Mata de Palma, CMI Energy marks its beginning in the Caribbean and, especially, in the Dominican Republic. Mata de Palma supplies clean energy and allows the country to feed its high level of economic growth, as the Dominican government points out, to have 25% of its electricity from non-conventional renewable sources,” said Enrique Crespo, CEO of CMI Capital.

He also noted: “CMI Energy reaffirms its commitment to continue working in every area where it operates, as it has done for more than 25 years, with the highest quality standards, respect for human rights and a strong commitment to care for, protect and conserve the environment and natural resources. Through our total generation of renewable energy, we are preventing emissions of more than 1.5 million tons of CO2 per year and thereby contributing to mitigate climate change. Specifically, in the Dominican Republic, with the generation of Mata de Palma, the annual emission of approximately 60,800 tons of CO2 is avoided, which shows our great environmental commitment to the country.”

 

The launching of Mata de Palma is another one of the many milestones that CMI has achieved over 100 years. Since 2002, CMI acquired Grupo Malla, a highly renown company which for decades participated in the Dominican market. Since then, CMI has operated 2 flour distribution centers, 2 flour processing plants and 6 flour mills in the country, and now Capital group is expanding its presence in the Dominican Republic. 

“The size of our business and our geographical footprint requires us to not only make our operations sustainable, but also to contribute in a measurable way to the development of countries. Therefore, through our business divisions we seek to be an active part, from the role of agents of change in the region, and now in the Dominican Republic, through our capacity to generate investments that positively impact economic, environmental and social approaches,” said Crespo.

 

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About Corporación Multi-Inversiones - CMI-: Corporación Multi-Inversiones is a Latin-American family-owned corporation that generates investment and employment in the region, made of more than 40 thousand employees operating in more than 15 countries, particularly in Central America and the Caribbean. Through its Business Groups: Capital and Food, creates a sustainable impact in the communities where it operates, offering excellent, quality products and services, consolidating itself as one of the most important business groups in Latin America. For more information: www.somoscmi.com

 

About CMI Energy: CMI Energy, the business division of CMI Capital, stands out as the region's largest private renewable energy platform, with its highly diversified portfolio through technologies and geographies, its operational capacities and trajectory, and its high and ongoing commitment to sustainability.  Operating hydroelectric plants in Guatemala, solar plants in El Salvador, Honduras and the Dominican Republic, wind farms in Honduras, Nicaragua and Costa Rica, which exceed 800 MW of installed capacity.

For more information: https://somoscmi.com/es/agrupaciones-de-negocio/cmi-capital  

 

 

 

 

Press Room

La Unidad de Negocios de CMI Energía se dedica al desarrollo, diseño, ejecución, operación y comercialización de proyectos de generación de energía eléctrica, con recursos renovables en la región centroamericana.

CORPORACIÓN MULTI INVERSIONES RECEIVES WORLD-RENOWNED AWARD FOR PLACING US$ 700 MILLION IN GREEN BONDS

Published:

21 October, 2021

  • LatinFinance Magazine awarded the multilatina company the “Project & Infrastructure Finance Awards” in the Infrastructure Financing of the Year - Central America category, due to the successful placement of US$ 700 million in green bonds carried out in April 2021.
 
  • The award brings together the region's leading infrastructure developers, investors, regulators, financiers and advisers each year to reward the excellence of the industry's most outstanding projects.
 
  • CMI Energía is the leading private renewable energy company in Central America and the Caribbean, focused on operational excellence, sustainable growth and generating a positive impact in the communities where it operates.
New York, October 6, 2021. CMI Energía, part of the CMI Capital group of Corporación Multi Inversiones, received one of the most important awards in the financial industry on September 30 after successfully placing US $ 700 million of green bonds in April 2021.  

These are the Project & Infrastructure Finance Awards, awarded each year by the prestigious LatinFinance Magazine, to recognize financial institutions in Latin America and the Caribbean that, through their successful projects, have generated economic progress for the region.

 

CMI Energía was recognized in the Infrastructure Financing of the Year - Central America category.

These awards offer a wide perspective on the achievements highlighted by each company in the last year, since the winners are selected by the magazine's editors, taking into account factors such as innovation, opportunity, foresight, quality of execution and impact.

 

"We are pleased to receive this award from LatinFinance, and it allows us to reaffirm our commitment to continuous growth and generating a positive impact on the environment and the communities where we operate," explained Enrique Crespo, CEO of CMI Capital.

 

Last April, CMI Energía successfully placed US $ 700 million in green bonds, with a yield of 6.25% and maturing in 2029, as well as a syndicated line of credit of approximately US $ 300 million.

This transaction is the largest ever made by a renewable energy company in Central America and the Caribbean, and it marked the company's entry into the international capital market, with the broadest and most diversified private portfolio of 100% renewable energy in the region.

 

The success of this placement is explained not only by the technological and geographic diversity of its energy platform, but also by the strong commitment that CMI Capital has with the care, protection and conservation of the environment and respect for human rights.

CMI Capital firmly believes in the potential of its investments in power generation through renewable sources, which are also essential to combat climate change and limit its most critical effects.

 

Through its portfolio, the corporation contributes to caring for the environment, preventing the emission of approximately 1 million 578 thousand tons of carbon dioxide per year, directly fighting climate change.

 

“To invest in renewable energy is to invest in comprehensive sustainability. And for that, it is essential that we promote a reliable, affordable and decarbonized energy system to continue contributing to the social, economic and environmental growth of countries, ” added Crespo.

 

Within the framework of CMI's 100-year history, with this award, CMI Energía continues to add milestones, while fulfilling its strategic vision of generating impact investments that promote sustainable development.

 

With a solid 30-year editorial experience, LatinFinance is the specialized magazine and reference for information on financial markets and the economies of Latin America and the Caribbean. Its publications offer valuable information to an international audience made up of senior executives of corporations, government and investors from around the world.

   
 

About Corporación Multi Inversiones -CMI-: Corporación Multi Inversiones is a multilatina family corporation that generates investment and employment in the region, made up of over 40 thousand employees and with a presence in more than 15 countries, particularly in Central America and the Caribbean. Through its Business Groups: Capital and Food, it creates a sustainable impact in the communities where it operates, offering excellence and quality in its products and services, consolidating itself as one of the most important business groups in Latin America. For more information: www.somoscmi.com

 

About CMI Energía: CMI Energía, a business unit of CMI Capital, stands out as the largest private renewable energy platform in the region, its highly diversified portfolio across technologies and geographies, its operating capabilities and track record, and its high and continuous commitment to sustainability. With the operation of hydraulic power plants in Guatemala, Solar in El Salvador, Honduras and the Dominican Republic, Wind in Honduras, Nicaragua and Costa Rica, it exceeds 800 MW of installed capacity. For more information:https://somoscmi.com/es/agrupaciones-de-negocio/cmi-capital

 

Limitation of Liability

This release includes forward-looking statements. These forward-looking statements involve risks, uncertainties and assumptions. CMI does not undertake any obligation to update or correct the information contained in this press release.

 

Press Room

La Unidad de Negocios de CMI Energía se dedica al desarrollo, diseño, ejecución, operación y comercialización de proyectos de generación de energía eléctrica, con recursos renovables en la región centroamericana.

CORPORACIÓN MULTI-INVERSIONES -CMI-, SUCCESSFULLY ISSUED GREEN BONDS FOR US$700 MILLION

Published:

21 October, 2021

  • CMI Energía, part of CMI, a Latin-American family corporation, placed the largest green bond of a renewable energy company in Central America and the Caribbean.
 
  • Qualified institutional investors (“QIB’s Qualified Institutional Buyers”) highlighted their confidence in renewable energy projects, and in CMI as a key player in the Central American and Caribbean markets.
 
  • Investors expressed their confidence in CMI and the region by making offers that were nearly five (5) times the size of the issue. Investor offerings were global: United States (56%), Europe (29.4%), Asia (2.3%) and Latin America (12.3%)
 

New York, April 27, 2021. CMI Energía, part of CMI Capital group of Corporación Multi-Inversiones, (i) issued US$700 million of green bonds at an interest rate of 6.250% and expiring in 2029, and (ii) closed a syndicated loan of US$300 million to refinance all of its project finance indebtedness.  The successful transaction was executed in the framework of CMI's 100th anniversary.

 

This is the largest green bond placement by a renewable energy company in Central America and the Caribbean to date, and represents the entry of CMI Energía into the international capital markets with the largest and most diversified private, one-hundred percent renewable energy portfolio in Central America and the Caribbean.

 

Investors expressed their confidence in CMI and the region by making offers that were nearly five (5) times the size of the issue. The geographic diversification of investors stands out, with offers from investors from the United States (56%), Europe (29.4%), Asia (2.3%) and Latin America (12.3%); many of which have a focus on ESG (environmental, social and governance) criteria, which in recent years has become the benchmark for socially responsible investments.

 

“We are very proud to be the region’s leading private, renewable energy company. Our purpose is to generate impact investments that drive sustainable development.

 

Through the placement of green bonds, we seek to optimize the capital structure and operation of our company, with continuous growth and a positive impact for the communities in the jurisdictions where which we operate”, explained Enrique Crespo, CEO of CMI Capital. 

 

Rothschild & Co and Clifford Chance acted as financial advisor and legal advisor to CMI, respectively, on the transaction. The green bonds were rated Ba3 by Moody’s, BB- by Fitch Ratings and BB- by Standard & Poor’s (S&P); which represents an improvement over the previous ratings.

 

Placing green bonds implies the issuer’s commitment to carry out sustainable investments. In this regard, the action is aligned with the objectives of CMI Energía contributing to reduce GHG emissions (greenhouse gases), and the decarbonization and diversification of the regional energy network in the countries where it operates. In this way, CMI Energía consolidates its investments in the region, under a solid vision for a sustainable future.

 

The 4 eligible categories, covered under green bonds, which have been aligned to specific SDGs, are:  

  • Renewable energy: Renewable Energy and Climate Action
  • Energy efficiency: Renewable Energy and Climate Action
  • Green buildings: Innovation and infrastructure, and sustainable cities and communities
  • Clean Transport: Sustainable cities and communities

 

On the importance of this issuance for CMI, Mr. Crespo explained: “In the framework of CMI’s 100-year trayectory, CMI Energía has successfully entered the bond markets for the first time, consolidating our strengths as a Latin-American family group of business excellence and constant growth, with knowledge and experience in business operations in the region”.

 

CMI Energía ratifies its commitment to continue working in every geography where it operates, as it has done for more than 25 years, with the highest quality standards, respect for human rights and a strong commitment to the care, protection and conservation of the environment.

 

The green bonds and guarantees thereof have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and they may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.


 

About Corporación Multi Inversiones -CMI-: Corporación Multi Inversiones is a Latin-American family company that generates investment and employment in the region, made up of more than 40 thousand employees operating in more than 15 countries, particularly in Central America and the Caribbean. Through its Business Groups: Capital and Food, it creates a sustainable impact in the communities where it operates, offering excellence and quality in its products and services, consolidating itself as one of the most important business groups in Latin America. For more information: www.somoscmi.com

 

About CMI Energía: CMI Energía, is a business division of CMI Capital, which stands out as the largest private renewable energy platform in the region, with a highly diversified portfolio across technologies and geographies, the operating capabilities and track record, and a high and continued commitment to sustainability. With its operation of hydraulic power plants in Guatemala, solar energy plants in El Salvador, Honduras and the Dominican Republic, and wind power plants in Honduras, Nicaragua, and Costa Rica, it exceeds 800 MW of installed capacity. For more information: https://somoscmi.com/es/agrupaciones-de-negocio/cmi-capital

 

Limitation of Liabilities This release includes forward-looking statements. These forward-looking statements involve risks, uncertainties, and assumptions. CMI assumes no obligation to update or correct the information contained in this press release.

 

 

Press Room

La Unidad de Negocios de CMI Energía se dedica al desarrollo, diseño, ejecución, operación y comercialización de proyectos de generación de energía eléctrica, con recursos renovables en la región centroamericana.

STANDARD & POORS GLOBAL PLATTS GRANTS INTERNATIONAL AWARD TO THE HYDROELECTRIC COMPLEX RENACE

Published:

21 October, 2021

Said award to the hydroelectric that forms a part of Corporación Multi Inversiones is granted among over 250 participants worldwide.

 

New York, December 7, 2018. On the occasion of the Global Forum that S&P organizes with key players in the energy sector worldwide, the “Corporate Social Responsibility Award - Diversified Program” award was presented yesterday, whose purpose is to reward shared value strategies in the energy sector worldwide.

 

The award was granted for the comprehensiveness offered by the shared social value strategy that Renace has been developing for seven years in the department of Alta Verapaz, Guatemala. This strategy seeks to support all critical stages of development of the human person through the implementation of 7 programs of sustainable social development, that are linked, coherent and systematic, in 29 Q'eqchi communities that inhabit the Cahabón river basin in the Municipality of San Pedro Carchá.

   

“The challenge of building large engineering structures in rural, marginalized areas that are mostly indigenous in Guatemala, is immense, but at the same time it is a great opportunity for learning and growth. As an organization, it allowed us to build one of the best-conceived and impressive engineering structures in the country, while simultaneously implementing the best global practices of community relations, promoting the sustainable social development of the area through the construction of critical community infrastructure and the implementation of programs for the integral development of people, and caring for the environment at the same time; all of the above acting with ethical values ​​and cultural relevance. The results today are visible through the positive change in the social indicators of the area such as the reduction of chronic malnutrition, an increase in the quality of education and school permanence, the reduction of teenage pregnancies, among others. The Renace hydroelectric complex and its programs is a sign that companies, the central government, local governments, leaders, communities and the civil sector can work together to change our country,” said Juan Carlos Méndez, General Director of CMI Energía.

   

This award coincides with another important milestone for Renace because the construction of phase IV and last of the hydroelectric complex was completed during this week, and its construction took approximately 36 months and was under the charge of the Spanish contractor, Grupo Cobra. This phase will inject an additional 55 MW of clean energy into the national system, for the benefit of the competitiveness of the country and all Guatemalans, since it strongly supports the reduction of electricity rates to the final consumer and supports the achievement of Goal # 7 of the Goals of Sustainable Development of the UN, which aims for all of us to have access to clean and sustainable energy.

   

Enrique Crespo, CEO of CMI Capital pointed out: “At Corporación Multi Inversiones we are convinced that the fourth industrial revolution needs more companies that can add shared value in the area where they operate so that the development of the country may be sustainable for all, where human rights, the protection of natural resources and the advancement in social indicators are our impulse as a society "

         

About CMI Energía: We are dedicated to the development, design and operation of projects for the generation and commercialization of electricity, primarily with renewable resources, in Central America. It started with a hydroelectric plant in 2009, expanding in the market and diversifying its operations in 2016, with wind and solar energy projects, which currently allows it to have more than 800 MW throughout the region. CMI Energía has a strong commitment to continue investing in all the countries it operates to create jobs and promote long-term development, through a robust Social and Environmental Management strategy; which help to achieve the sustainable development goals

 

About the Hydroelectric Complex Renace: Hydroelectric generation project consisting of four cascade plants, located on the Cahabón River in San Pedro Carchá, whose activities of shared social and environmental value benefit 21,000 people in 29 Q'eqchi communities.

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