Empresa Generadora de Electricidad Haina (EGE Haina) is the first Dominican company to set up a trust for the issuance of fixed income environmental impact green bonds, for a total amount of US$100 million, based on one of its renewable power plants, whose structure was advised by the Investment Banking Area of Banco Popular Dominicano and will be launched to the market and managed by Fiduciaria Popular, a subsidiary of Grupo Popular.
The Larimar I Securities Public Offering Trust will have as its main underlying asset the economic rights of the Larimar I Wind Farm, owned by EGE Haina, after having received the approval of its incorporation by the Superintendencia del Mercado de Valores de la República Dominicana (SIMV).
The issuance program, structured under the guidelines of the SIMV and the International Capital Markets Association (ICMA), obtained an “A” risk rating from Feller Rate Dominicana. Compliance with the standards has been validated by Pacific Corporate Sustainability and it has the first Climate Bond certification in the country, issued by the Climate Bonds Initiative.
Fixed income in dollars
This is a public offering of fixed-income securities in dollars, which will be placed in the local capital market through the brokerage firm Inversiones Popular.
The securities will have a maximum maturity date of July 31, 2036, with annual principal amortizations starting in 2022. The interest payment terms will be established in the placement notices of the issues.
This type of instrument is intended to finance or refinance “green” projects, such as investment in sustainable and socially responsible assets, including renewable energy and energy efficiency.
On this occasion, EGE Haina will use the resources raised by the issue mainly to finance the construction of the Girasol Solar Park, which will be the largest photovoltaic plant in the country and in the Antilles, and which will increase the national capacity of this type of energy by 64%.
Contribution to the Sustainable Development Goals
From 2011 to 2021, EGE Haina has installed four wind and two solar power plants in the country, which together will avoid the annual emission into the atmosphere of 460,000 tons of CO2 equivalent and the import of 1,400,000 barrels of oil.
The company thus contributes to the achievement of Sustainable Development Goals (SDGs) 7 and 13: affordable and clean energy and climate action, established by the United Nations.
Luis Mejía Brache, general manager of EGE Haina, said in this regard that this issuance supports the company’s track record of financial innovation and contributes to its growth strategy, which has as its axis the development of 1,000 megawatts of renewable sources by 2030. “This bond allows us to continue increasing the generation of clean energy, as part of our commitment to the sustainable development of the Dominican Republic,” he said.
Meanwhile, Edward Baldera, vice president of the International, Institutional and Investment Banking Area of Popular, emphasized that the structuring, administration and placement of this first green investment instrument is a milestone in the Dominican capital market.
“This first green public offering trust supports the sustainable vision of Grupo Popular and evidences that we are the financial group of economic, social and environmental development, by promoting a model of sustainable economic growth compatible with environmental conservation,” he said.