In Santo Domingo, ENADOM (Dominican Natural Energy ENADOM, SRL), a luminary in infrastructure services related to the storage and transport of natural gas (NG), has successfully gained approval from the Securities Market Superintendent (SIMV) for a Corporate Bond Issuance Program. The program is valued at USD300 million and has a maturity period of up to 15 years.
CCI Puesto de Bolsa structured the issue with the assistance of BHD Puesto de Bolsa serving as a co-placement agent. The placement process involves 11 of the 15 country-wide stock exchanges.
RENADOM, a collaboration between leading energy groups AES Dominicana and Energas, possesses key assets crucial to the ongoing energy supply to the Dominican Republic. Under the oversight of AES Dominicana, ENADOM guarantees a competitive delivery of around 800 MW of natural gas to critical power plants through the Eastern Gas Pipeline, stretching 50 km, and a Natural Gas storage tank having a capacity of 120,000 mt3, strategically located in Punta Caucedo, Boca Chica.
These facts establish ENADOM as the most competitive and optimally placed company to fulfil the energy requirements of the Dominican Republic. A rating of DOAA- with a stable outlook, granted by Feller Rate, for ENADOM's solvency and the corresponding issuance programme reinforces confidence in the company’s financial robustness and the investment.
The aim of ENADOM’s issuance programme is to refine the issuer’s debt profile and capital structure. Furthermore, they can use the funds raised to finance upcoming growth projects, further solidifying its market position.
Edwin De los Santos, the CEO of ENADOM, avers, “This issuance, analogous to those we have spearheaded previously through AES Dominicana, considerably fortifies and broadens the burgeoning stock market of the Dominican Republic, apart from promoting national productivity competitiveness reliant on electricity generation via natural gas. It’s an annually considerable saving to the Dominican economy as a fuel and results in an annual reduction of close to 900,000 tons of CO2 by substituting other fuels.”
In the words of Osvaldo Oller, Vice President of Finance at ENADOM, “These corporate bonds provide investment opportunities in an asset backed by top-tier infrastructure and assets. Long-term contracts facilitate a steady income stream for the issuer over the programme period. Taking into account ENADOM’s financial performance and future expansion strategies, it becomes a desirable option for growth-driven investors, reassured by a favourable risk rating.”
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