Issuance of green bond for Anpac refinancing

We are pleased to announce that on March 19, 2024, Anpac SpA, our run-of-river hydroelectric portfolio, successfully concluded a long-term refinancing process with the issuance of a USD $98 million 15-year green bond through the U.S. Private Placement market. This landmark transaction strengthens Anpac’s long term capital structure and confirms our commitment to sustainable finance.

Anpac’s hydro portfolio has total installed capacity of 73 MW which is comprised of 10 run-of-river plants, 9 of which are currently operational and 1 in the final stage of construction. Notably, this transaction introduced innovative structural features, including a variable amortization component, construction risk coverage, and a callability option. The proceeds from the issuance will be used to pay existing debt and support shareholder growth plans in Chile.

We are proud to have partnered with renowned local and international players in executing this transaction. BTG Pactual and HSBC acted as placement agents, while legal advisors included Milbank and Morales & Besa for the issuer, Clifford Chance and Barros & Errázuriz for the note purchasers, and Shearman & Sterling and Carey for standby letter of credit providers.

This successful issuance reaffirms Grupo Cerro’s commitment to sustainability and the development of 24/7 renewable energy initiatives.