AES Gener Postpones Capital Increase for the First Quarter of 2021 after Receiving US$833 Million

January 1, 2020

SANTIAGO, October 1, 2020.- As a result of the successful execution of the Greentegra strategy, whose main objective is to accelerate the decarbonization process in Chile, the company has sufficient liquidity – US$833 million as a result of the monetization of the future value of the Angamos contracts and the incorporation of Toesca as a partner in Cochrane – to meet the commitments and capital needs in the coming months. In line with the above, the management has decided to postpone the capital increase of US$500 million for the first quarter of 2021.

The proposal of the Board of Directors of the Company to extend the term –by 180 days– to set the final price and start with the placement of all or part of the US$500 million capital increase agreed on April 16, 2020, was approved today during the Extraordinary Shareholders’ Meeting of AES Gener.

The meeting was held in Santiago via teleconference and with all the necessary security measures for the people who were present.

The capital increase approved is the largest in AES Gener’s history and will be used to finance the construction of renewable projects based on state-of-the-art wind, solar and battery technology in Chile and Colombia.

Ricardo Manuel Falú, CEO of AES Gener, along with thanking the shareholders for approving the extension of the initial term, said that “the monetization of the Angamos contracts and the incorporation of Toesca into our investment in Cochrane are an unequivocal proof that the value of AES Gener lies in its contracts and long-term relationships with its customers and not in its coal-based assets.”

Meanwhile, Ricardo Roizen, CFO of AES Gener, said that “the successful progress in the implementation of our strategy has allowed us to have the necessary liquidity to continue with the development of our renewable projects, maintain our dividend policy and postpone the capital increase until the first quarter of 2021.”

STATUS OF THE COMPANY

During the meeting, Ricardo Falú informed the shareholders of the measures and protocols implemented during the pandemic to guarantee the safety of the collaborators and deliver the reliable energy that Chile, Argentina and Colombia need.

He said that AES Gener has remained the main electricity generating company in Chile, contributing 26% of the country’s energy.

He also informed about the progress made in the projects for 719 MW that the Company currently has under construction, highlighting that Alto Maipo is 92% complete.

He stressed that while the Company is not immune to the pandemic, its strategy and operations have proven to be resilient.