ICE reduces its share of debt in dollars by 13.7%

This ICE release was published using machine translation.

As a result of a series of actions carried out to improve its financial management, the Costa Rican Electricity Institute (ICE) managed to improve the maturity profile of its debt, in addition to reducing the portion of debt in dollars by 13.7%.

Among the operations carried out to achieve the goal, the renegotiation of the conditions of Trust One to build the Reventazón Hydroelectric Plant - inaugurated in 2016 -, the colonization of loans in dollars, the auction and exchange of local bonds, the issuance of bonds international markets and the placement of a green bond.

These actions were leveraged in the implementation of innovative financial instruments, which made it possible to improve credit conditions –both in terms of terms and interest rates–, minimize exchange risk and favor the Institute's cash flow.

Likewise, ICE reduced its exposure to the risk of interest rate variations by 13%, by substituting debt with variable rates for debt with fixed rates. Additionally, the new debt has more favorable interest rates, which cause a decrease in the weighted average cost of the debt.

“The improvements have as a precedent a technical, meticulous and constant planning. We seek to reposition ICE in the banking and financial sector, while regaining confidence among investors, "said Hazel Cépeda, general manager.

The work to renew financial conditions began in 2019, with the publication of Strategy 4.0 and the Roadmap for financial sustainability , documents that established a path to optimize resources, generate savings and manage risks, maintaining a solid profile that guarantees the continuity of the services provided.

How were the actions carried out?

  • June 19, 2019. Grupo ICE Strategy 4.0 is published, which contains the Roadmap for ICE's financial sustainability.

• August 14, 2020. The renegotiation of the financing of Trust One of the Reventazón Hydroelectric Plant has been finalized, which will generate a decrease in payments of approximately ₡ 15.6 billion in the next three years.

• October 19, 2020. Moody's confirmed that ICE retained its B1 rating with a Negative outlook, above Costa Rica's rating ( B2 ).

• September 15, 2021. An operation to convert into national currency the balance of two loans with the Inter-American Development Bank (IDB) for $ 221 million has been closed.

• September 30, 2021. ICE successfully placed its first international bonds linked to sustainability (SLB), for $ 300 million. The Institute received offers close to $ 1 billion.

• November 4, 2021. The first green bond issue was placed, this time linked to the Reventazón Hydroelectric Plant.

• November 5, 2021. Formalized a loan with the Bank of Costa Rica (BCR) for ₡ 81,000 million to meet the maturity of debt in dollars.

  • November 10, 2021. The COSICE 2021 international bond for $ 483 million was canceled within the term.