HOUSTON--(BUSINESS WIRE)--AEI announced today that its wholly-owned subsidiary, Jaguar Energy Guatemala LLC (Jaguar Energy), closed long-term financing for the construction of a new 300 MW solid fuel-fired power plant located near Puerto Quetzal, Guatemala. The $350 million facility is a 10-year construction and term loan formed by a syndicate of regional and international banks led by Banca de Inversion Bancolombia Corporación Financiera, S.A. (BI Bancolombia) and the Central American Bank for Economic Integration (CABEI).

The power plant, which will be built by China Machine New Energy Corp. (CMNC) pursuant to a “turn-key” EPC contract, consists of two solid fuel fired circulated fluidized bed boilers using advanced technology designed to comply with the Equator Principles and International Finance Corporation’s Performance Standards and Environmental, Health and Safety Guidelines. Jaguar Energy is contracted to sell 200 MW of its power to Gas Natural’s local Guatemalan electricity distribution companies through 15-year PPA’s entered into in 2008 with the remainder expected to be sold in the local Guatemalan and regional wholesale power markets. Notice to commence under the EPC contract was issued on March 29, 2010, and commercial operation is anticipated in 2013.

“This energy infrastructure investment underpins AEI’s continued commitment to Guatemala and the Central American region and is indicative of the company’s confidence in the electricity sector’s legal and regulatory frameworks”, said Jim Hughes, AEI’s Chief Executive Officer.

“The project’s financing has been a successful joint effort between AEI and the lead arrangers; the result is a facility with sound fundamentals that demonstrates the financial market potential for well structured development projects”, said Mr. Rodrigo Velasquez Uribe and Mr. Nick Rischbieth respective CEO’s from BI Bancolombia and CABEI, in a joint statement.

“On completion, Jaguar Energy will provide Guatemala with reliable and affordable energy, which will contribute to improving the overall economic environment and investment conditions for Guatemala”, added Roberto Figueroa, AEI’s Executive Vice President for Central America and the Caribbean.

About AEI:

AEI owns and operates essential energy infrastructure businesses in emerging markets, with more than $8.2 billion in revenues in 2009. AEI has approximately 4.9 million electric power customers, 2.5 million natural gas customers and 15,430 employees. AEI operates businesses in Power Distribution, Power Generation, Natural Gas Transportation and Services, Natural Gas Distribution, and Retail Fuel, with approximately 121,000 miles of power distribution and transmission lines, 2,277 MW of electric power generation capacity, 4,920 miles of natural gas and gas liquids pipelines, 21,656 miles of natural gas pipeline distribution networks and over 1,800 owned and affiliated gasoline and compressed natural gas service stations. To learn more, please visit our web site at www.aeienergy.com.

About Banca de Inversión Bancolombia Corporación Financiera S.A.:

BI Bancolombia is part of Grupo Bancolombia with over 130 years of experience offering a wide range of banking products and services to a diversified individual and corporate base of more than 6.9 million customers. Bancolombia delivers its products and services via its regional network comprised of Colombia’s largest non-government owned banking network, El Salvador’s leading financial conglomerate (Banagricola S.A), off-shore Banking subsidiaries in Panamá, Cayman and Puerto Rico, as well as an agency in Miami. Together, Bancolombia and its subsidiaries provide stock brokerage, investment banking, leasing, factoring, consumer finance, fiduciary and trust services, asset management, pension fund administration, and insurance, among others. www.grupobancolombia.com

About Central American Bank for Economic Integration (CABEI):

With its headquarters in Tegucigalpa, Honduras, CABEI is the leading provider of financial solutions for the development of the region. As part of the regional integration process and with the purpose of promoting the economic and social development of Central America, the Central American Bank for Economic Integration was founded in December 1960, by the Republics of Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica. To date, the Bank has incorporated non-regional members to its capital: Mexico, the Republic of China (Taiwan), Argentina, Colombia, the Kingdom of Spain, Panama and Dominican Republic, Belize was also incorporated to the bank as non founder beneficiary country. Visit www.bcie.org