AES Gener to lower capital hike to USD 300m

Santiago-based power utility AES Gener SA said that it will seek the board approval to carry out a USD-300-million (EUR 249m) capital increase to finance renewable energy development.

The company was initially planning to raise USD 500 million to secure part of the financing needed to install 1.6 GW of wind and solar power capacity in Chile and Colombia. In April 2020, AES Gener obtained shareholder approval for the capital hike, calling it the largest in its history.

Later this year, AES Gener postponed the capital increase for the first quarter of 2021 after securing more than enough money from terminated coal power purchase agreements (PPAs) and from a sale of a stake in a coal-fired plant.

On Tuesday, AES Gener said it will propose to shave USD 200 million off the initial proposal on the strength of the company’s liquidity.

(USD 1.0 = EUR 0.830)

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