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Central Puerto Announces the Purchase and Expansion of Brigadier López Plant (420 MW)

BUENOS AIRES, Argentina--(BUSINESS WIRE)--

Central Puerto S.A. (“Central Puerto”) (CEPU), announced the purchase and expansion of the Brigadier López plant from IEASA, a company owned by the argentine government, effective April 1, 2019.

The plant currently operates with a gas turbine (280 MW) in an open cycle configuration and is currently in advance stages to add a steam turbine in a combined cycle configuration, which will add 140 MW. Once completed, the combined cycle will increase its efficiency significantly, becoming the most efficient combined cycle of Argentina in terms of heat rate (approximately 1,485 Kcal/KWh), according to CAMMESA’s estimations. The power capacity and the energy produced will be taken by CAMMESA under PPA agreements.

"The award of the Brigadier López plant shows the strong commitment of Central Puerto, which even in a complex economic context, focuses in the future, consolidating itself as one of the leaders of the market, providing solutions to the energy requirements of the Argentina," said Jorge Rauber, CEO and Vice-President of the company.

The price offered for the transaction was US$ 165 million, from which US$ 155 million will be paid in cash, and US$ 10 million will be settled with the transfer of trade receivables owed to the company by CAMMESA (LVFVD), accrued in past under prior regulations.

Central Puerto will also assume US$ 161 million in debt, to be paid in 41 monthly equal installments starting on April 2019 and accruing a 6 months-Libor +5% variable or 6.25% fixed interest rate, the highest.

With this purchase, the consolidated installed capacity of Central Puerto as of April 1, 2019 will increase 7%, totaling 4,090 MW.

Taking into account all its expansions plans, Central Puerto expects that its consolidated installed capacity will reach 4,889 MW, an increase of 28% compared to the company's current installed capacity.

For more information on this project, please visit www.centralpuerto.com.

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