CAF signs US$ 500 million A/B loan with Cálidda to support energy transition in Peru

CAF, Development Bank of Latin America and the Caribbean, in its role as Lender of Record and Lead Arranger , has successfully structured an A/B loan operation for a total of US$500 million in favor of Cálidda, the natural gas distribution service concessionaire in Lima and Callao. The main purpose of this loan is to support the expansion of the natural gas distribution system in Cálidda's concession area, contributing to the massification of access to this important public service.

The loan proceeds will be used mainly to finance Cálidda's investment plan to expand the country's energy infrastructure, with the goal of connecting 900,000 new people to natural gas service by 2030 and deploying an additional 569 kilometers of distribution networks. This expansion is crucial to continue promoting the massification of natural gas; in addition, this loan will allow Cálidda to refinance part of its current receivables that originally served for the deployment of the natural gas distribution network.

The transaction was backed by three leading international financial institutions in their role as B Participants: Bank of America N.A. (BofA); Bank of China Limited, Panama Branch (BOC); and SMBC. In this way, CAF mobilized private sector resources for a total of US$245MM for the region. BofA's participation in its first AB Loan with CAF is noteworthy, while BOC and SMBC are recurring partners of CAF in this type of operation.

This operation reaffirms CAF's commitment to mobilize private capital to the region, aligning with the methodologies harmonized by Multilateral Banks. It also strengthens its strategy of inclusive and sustainable energy transition, while reflecting confidence in Cálidda as Peru's leading natural gas distribution company.

"The confidence shown by BofA, BOC and SMBC in this Cálidda initiative reaffirms the potential of these financial structures to mobilize international capital towards energy transition projects that generate a transformative impact on access to elemental public services that enable the sustainable development of our communities," said Sergio Díaz-Granados, CAF's executive president.

For Cálidda, this financing is a fundamental milestone in its growth strategy and commitment to the country's energy transition.

"We at Cálidda are grateful for the trust placed by CAF in the structuring of this transaction, which will allow us to secure the necessary funds to continue with the process of massification of natural gas in Lima and Callao. With these resources we will expand our distribution network and advance towards the goal of connecting 900 thousand new people to the service by 2030," said Mario Caballero, CFO of Cálidda.

The company highlighted that this financing also contributes to strengthen its financial structure, optimizing liabilities originally destined to the development of the network, which ensures greater sustainability to its investment plan in the long term.

"The confidence of CAF and international financial institutions such as BofA, BOC and SMBC reaffirms Cálidda's position as the main natural gas distribution company in Peru and a key player in the country's energy transition process," the executive added.

Cálidda thus ratifies its purpose of promoting universal access to natural gas in Peru, generating positive impacts in terms of competitiveness, quality of life, health and sustainability.

CAF continues to consolidate its position as a mobilizer of private sector resources for high-impact projects in the region. Through this operation, the institution reinforces its strategy of generating innovative financial solutions that promote economic development, social inclusion and environmental sustainability in Latin America and the Caribbean.

About CAF -development bank of Latin America and the Caribbean- is an institution committed to the development of Latin America and the Caribbean.

CAF is an institution committed to sustainable development and regional integration. Founded in 1970, it has the participation of 23 countries, including 21 from Latin America and the Caribbean, as well as Spain and Portugal, along with 13 private banks. Its mission is to improve the quality of life of Latin Americans and Caribbeans by financing projects in the public and private sectors, providing technical cooperation and other specialized services. CAF is one of the main sources of multilateral financing in the region and a generator of knowledge to strengthen public policies and improve the impact of projects(www.caf.com).

About Cálidda

Cálidda is celebrating 21 years bringing Natural Gas service to the families of Lima and Callao, which has allowed them to save more than US$ 40,970 million (Macroconsult). In two decades of service and with an investment of more than US$ 1,800 million, it has installed more than 2 million natural gas connections, through the construction of more than 18,000 km of networks. In addition, it has generated savings of more than S/ 1,915 million in public health thanks to the use of this cleaner energy. In line with the Sustainable Development Goals, Cálidda develops its business contributing to mitigate climate change and care for the environment. For more information, visit https://labuenaenergia.calidda.com.pe/

About Bank of America

Bank of America is one of the world's leading financial institutions, with a full range of banking, investment, asset management, financial and risk management products and services. It offers an unmatched network in the United States, serving approximately 69 million customers, with 3,700 financial centers, 15,000 automated teller machines (ATMs) and 59 million digital users in its award-winning digital banking. Bank of America is a global leader serving corporations, institutions, governments and individuals worldwide, supporting approximately 4 million households with innovative, easy-to-use online products and services. The company serves customers through operations in the United States, its territories and more than 35 countries. Bank of America Corporation's stock is traded on the New York Stock Exchange (NYSE: BAC)*.

*Neither Bank of America Corporation nor its affiliates conduct banking activities in any jurisdiction that are reserved by local law for chartered banks, except in those jurisdictions in which its banking affiliates have obtained the necessary licenses.

About SMBC Group

SMBC Group is a premier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a wide range of financial services, including banking, leasing, securities, credit cards and consumer finance. The Group has more than 150 offices and 120,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of the SMBC Group, which is one of the three largest banking groups in Japan. SMFG's shares are listed on the Tokyo Stock Exchange, the Nagoya Stock Exchange, and the New York Stock Exchange ADRs (NYSE: SMFG). In the Americas, SMBC Group has a presence in the United States, Canada, Mexico, Brazil, Chile, Colombia and Peru. The Group's operating companies in the Americas include Sumitomo Mitsui Banking Corp (SMBC), SMBC Americas Holdings, Inc, SMBC Nikko Securities America, Inc, SMBC Nikko Securities Canada, Ltd, SMBC Capital Markets, Inc, SMBC MANUBANK, JRI America, Inc, SMBC Leasing and Finance, Inc, Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co, Ltd (collectively, SMBC Group Americas Division). For more information, please visit www.smbcgroup.com

About Bank of China

Bank of China (BOC) is China's most internationalized and diversified bank, with more than a century of continuous operation. With a presence in 64 countries and regions, global institutional networks, connecting its clients with opportunities in major international markets.

Recognized as a Global Systemically Important Bank (G-SIB) for 14 consecutive years since 2011, combining global reach with financial strength. It also maintains a strong commitment to sustainability by driving green, inclusive, digital and technology-driven finance. Its business lines include Investment Banking, Corporate and Retail Banking, Insurance and Asset Management.