The AES Corporation announced today that its wholly-owned subsidiary, AES Holdings Brazil Ltda's (AES Brasil) has agreed to acquire an 18.5% economic interest in AES Tietê S.A from BNDES Participações S.A.'s (BNDESPar). Under the terms of the acquisition, AES Brasil will purchase for a total consideration of BRL $1.27 billion (equivalent to $246 million). This transaction will be funded primarily with already secured non-recourse debt financing from a consortium of Brazilian banks. This acquisition is expected to be $0.01 to $0.02 per share accretive to AES' annual earnings in 2020 and thereafter.

Once this transaction closes, AES will own 42.85% of the shares of AES Tietê. This transaction will strengthen AES' renewable portfolio and reinforces the substantial progress the Company is making toward achieving its aggressive decarbonization targets. Following closing, AES will propose the migration of AES Tietê to the Novo Mercado, the listing class with the highest governance level on the Brazilian stock market, in order to gain greater liquidity and value for the shares.

"By increasing our ownership in AES Tietê's 3.7 GW platform of renewables, we are reinforcing our commitment to reduce our total generation from coal to less than 30%," said Andrés Gluski, AES President and Chief Executive Officer. "Following this transaction, we plan to move AES Tietê's listing to the Novo Mercado, the highest corporate governance segment of companies listed on the Brazilian stock exchange, which is expected to further unlock the value of AES Tietê for the benefit of all shareholders."

As a part of this transaction, AES Brazil will buy 73.8 million units (five shares per unit) of AES Tietê at BRL $17.15 per unit, for total of BRL $1.27 billion. This transaction is subject to completion of final documentation and is expected to close in the third quarter of 2020.

AES Tietê has 3.7 GW of renewable generation in operation or under construction, consisting of 2.7 GW of hydro, 708 MW of wind and 310 MW of solar.

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global power company. We provide affordable, sustainable energy to 14 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce is committed to operational excellence and meeting the world's changing power needs. Our 2019 revenues were $10 billion and we own and manage $34 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.