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Message from our CEO, Cesar Cañedo-Argüelles
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There is no doubt that this decade began by testing our resilience. Just as we were beginning to forget about covid-19, war broke out, and yet we must continue to look ahead. As citizens of the world, we have a number of vital issues to resolve. These include reviving the economy, combating climate change and overcoming inflation, just to mention three major challenges for humanity.
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In the midst of so much turbulence and uncertainty, CIFI started 2022 with clear vision and commitments. We took on the task of promoting new projects that improve the quality of life of diverse communities in the region, strengthen the economies of the countries and protect the planet's resources by generating clean energy. We are proud to mention the Solek, San Jacinto, Axxa and oEnergy projects. We are also working on the due diligence of several others, and we have an interesting pipeline of projects to keep us entertained for the rest of the year.
We are also pleased to announce that our shareholder VALORA INFRAESTRUCTURA PARTNERS acquired an additional 11.34 % stake from CABEI. This acquisition goes hand in hand with our strategic plan to expand our product range to our customers. Having the commitment, experience and trajectory of this shareholder group guarantees continuity in the way CIFI has been operating.
In terms of our plans to expand our products, we are focused on raising and managing debt funds in the region. In this regard, we continue to make progress on two important initiatives that should materialize during the course of the year: the Sustainable Infrastructure Debt Fund and the Brazil Debt Fund.
These financial products are a perfect vehicle for investors seeking long-term, risk-adjusted returns and low volatility. Anyone who has watched the stock markets since the beginning of 2022 knows what we mean by avoiding volatility. CIFI's offer is based on a fundamental premise: to offer a stable and sustainable return. That's why our projects are accompanied by structures that strengthen their viability by creating a win-win environment for both developers and investors.
And how do we manage to achieve this? These are the main measures we take:
- It is key that the financing is denominated in the currency of the revenue. That is why we offer financing in U.S. dollars or local currency, depending on each country.
- When financing infrastructure projects, we seek to ensure that debt service follows the operating cash flow generation profile. We even set up reserve accounts for O&M, or debt service.
- In terms of our time horizon, we offer long-term financing. In this way, we avoid the risk of refinancing, which can coincide with difficult market times and threaten shareholder returns.
We are confident that our vision and strategy will lead us down successful paths amidst the challenges that may arise from today's global conflicts. As the saying goes: "what does not kill us, strengthens us" and "every crisis is an opportunity", and at Cifi we know how to see possibilities to improve the lives of people and entire communities by making responsible and sustainable investments in each project. We will keep you informed of the progress of these projects.
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We continue to finance clean energy generation.
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Impacting Nicaragua's energy matrix with geothermal energy.
CIFI led the structuring of a US$110 million senior loan to refinance the San Jacinto geothermal plant and finance a 10MW binary plant.
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Guillermo Sierra, CIFI's Investment Director of Structured and Corporate Finance, said he was "proud to have led, together with a great team of professionals, this financing" with which Polaris Infrastructure Inc, owner of this Nicaraguan geothermal plant, expands its clean energy generation.
The plant currently has an installed capacity of 72 MW and produces 13 % of Nicaragua's base load. With this new financial boost, the plant will increase its generation capacity to 82 MW..
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More photovoltaic energy for Chile .
CIFI structured a senior loan of up to US$22 M and a subordinated loan in the amount of US$4 M for AXXA Energía, S.A. Both loans will be used to develop, build, and operate 3 photovoltaic plants (Navío Solar SpA, Rucasol SpA, and Melón Renovables SpA), as well as 3 electrical substations to which the projects will be connected.
The portfolio will have a 15-year term and will reach an installed capacity of 31.84 Wp (27 MW nominal) and will generate at least 25,083 MWh of renewable energy in the first year of operation of the Rucasol project. This represents 10,502.25 tons of CO2eq per year that will stop polluting the Chilean atmosphere.
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We support PMGD projects in Chile
CIFI was commissioned by oEnergy Holding SpA to structure the financing of a portfolio of 24 PMGD photovoltaic projects with a total capacity of 72 MWp, estimated at a cost of US$ 86.6 million.
CIFI began disbursements in March to cover its commitments under the loan structure. These include a senior debt tranche of US$12.9 million and a subordinated debt tranche of US$2.6 million.
Over the years, Cifi has acquired extensive experience in the renewable energy sector, structuring loans for seven PMGD projects within Chile's energy organization system.
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Reliability and transparency of results
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Fulfilling our commitment, last March 17, Cifi presented its management report to strategic partners such as MMG Bank, one of the largest and most solid shareholder banks in Panama, as well as to more than 50 interested guests, from different sectors and regions, who shared online to learn about our results at year-end 2021. Among our main achievements we can highlight the followings:
- Net income was USD 9.7 million, surpassing the historical figure for the past 5 years.
- We maintained 41% of our loan portfolio in investment grade countries.
- Renewable energy projects grew up to 45% compared to the previous period..
Here you can see the complete presentation: Click Here
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Our experience becomes referential.
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Trust is one of the most important values in the financial industry. Throughout these 20 years, our executives have earned it. Today, their opinion and knowledge are sought in the most important international forums to address and analyze relevant and current issues for the different actors in the sector.
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These are some of the forums that were opened to members of our team to contribute with their knowledge:
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USTDA Caribbean Energy Forum
Ramón Candia, Chief Investment Officer, shared CIFI's experience in structuring financing products in the region. He explained how to address challenges faced by countries in the region when financing different projects and adapting them to the characteristics of their markets.
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Canada International Development Week
Our CEO, César Cañedo-Argüelles, participated as an expert speaker in FinDev Canada's annual event.
The central theme was sustainable infrastructure and its capacity as a transformative agent that combats poverty and climate change. César Cañedo-Argüelles was accompanied by Lori Kerr, CEO of #FinDev..
You can see the complete presentation here
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RENPOWER - CENTRAL AMERICA
Within this event, the "Financing Structures for Renewable Energy Projects in Central America” conference was held. Antonio Araúz, Investment Director of Structured and Corporate Finance, and Nicolás Giancola, Business Origination Manager, attended as panelist and participant, respectively.
The event, moderated by Juan Carlos Badillo of AtZ Investment Partners, provided an opportunity to learn about CIFI's solid 20-year track record, in which it has mobilized more than US$1.7 billion for some 200 infrastructure projects in the region. Our creative, collaborative and pragmatic approach marks a deference when analyzing challenges and seeking solutions and mitigating factors that allow our clients to make their transactions viable.
It is worth mentioning the valuable participation of Johana Gómez, from IDB Invest, and Nicole Grimaldo, from CABEI, both representatives of multilateral development banks very active in the region.
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P3 Financing
As part of a specialized course for ministers and senior government officials of the Dominican Republic, Ramón Candia, Chief Investment Officer, shared CIFI's experience in financing PPP projects. Jeannine Acevedo, partner at White & Case, and Shafik Collazo, director of Public-Private Partnerships in El Salvador, accompanied him in his presentation.
CIFI has a very important presence in the Dominican Republic, considering the loans it has granted and for being responsible for managing the first debt fund for infrastructure. In this last instrument it has important investors such as AFP Popular, AFP Crecer and AFP Reservas.
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Commitment and work on ESG
In February, our Head of ESG, Carla Chizmar, moderated the "First Global GRI Committee for ESG and Sustainable Infrastructure 2022". The event discussed trends and developments over the past year that impacted our sector. As a result, it was agreed to start the conversation around governance within ESG and the continued impact of COVID-19 on our operations.
CIFI continues to engage with key stakeholders to support the sustainable infrastructure agenda by integrating ESG factors into the decision-making process, as well as to continue to identify better ways to channel funds towards infrastructure projects that are responsibly developed and contribute to the SDGs.
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Strengthening ties and opening up development
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Ricardo Mesa, investment officer of Structured and Corporate Finance, traveled to St. Lucia to meet with senior executives of KLED and the country's prime minister.
The visit of our business team represents the strengthening of ties with authorities, partners and clients to strengthen new project opportunities that will enable growth and development in the region.
From right to left:
Harry Burdon, CFO of KLED; Richard Burdon, founder and CEO of KLED; Phillip J. Pierre, Prime Minister of St. Lucia; Stephenson King, Minister of Infrastructure of St. Lucia; Cornbread Chouloutte, General Manager of KLED; Ricardo Mesa, Investment Officer of Cifi Structured and Corporate Finance; and Peter Foster, KLED's lawyer.
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Returning to in-person life
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After holding virtual meetings due to the pandemic, CIFI's Board of Directors met in person in Panama on March 24.
All members of this vital administrative body were very pleased to conclude the first quarter of the year by reviewing objectives and strategizing together. We believe that corporate practices such as exchanging ideas and bonding are best done in person.
For CIFI, having a cohesive and transparent corporate governance has been one of the key virtues in its performance. Sharing clear rules has allowed us to strengthen and guarantee sound decision making, in addition to generating value and sustainability in the long term.
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Committed on transforming
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"We are CIFI" and we are passionate and committed to improving the quality of life for everyone. We are aware that the change we want in the world is not only achieved by building large projects. There are actions that can generate impact and transformation. That is why we make our constant contributions to that change. We share with you some of our upcoming activities to boost the spirit and spirit of people and communities.
- Donation to the community of Las Garzas, in Pacora, of clothes, books and household items by the company and its collaborators.
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- Mentoring for women entrepreneurs with limited resources, in support of Junior Achievement Women's Entrepreneurship Chapter. .
- National Reforestation Day in Tanara, Chepo. Cifi's CSR team remains committed to these positive initiatives that help make our forests more resilient to future challenges like climate change and wildfire
- Donation of meals to the Oncology Hospital. CIFI will make a generous donation of food for patients and relatives of the Instituto Oncológico Nacional Juan Demóstenes Arosemena, consolidating the goodwill between companies that unite in the battle against cancer.
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Words turned into support
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In February, our CEO, César Cañedo-Argüelles, was a speaker at the webinar "Sustainable Infrastructure to Combat Climate Change and Reduce Poverty", organized by FinDev Canada. In appreciation for his participation, FinDev Canada made a donation to the charity FANLYC, a foundation that César chose in recognition of the support they have provided for 26 years to the humble families of children with cancer.
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CIFI NEWS OCTUBRE 2021
Edición #2
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