CDC subsidiary places US$50M bond issue in Peru

28 October 2002

Southern Cone Power Peru, a subsidiary of CDC Globeleq, CDC Group's global power business, recently placed US$50 million in corporate bonds in the Peruvian market. The ten year issue, which was underwritten by Citibank, was subscribed on August 22, 2002. The success of the issue reaffirms CDC Globeleq's confidence in the Peruvian power sector.

Southern Cone Power Peru, owned by affiliates of CDC Globeleq and DB Capital Partners, owns a 24 percent indirect interest in Edegel, S.A., the largest privately owned power company in Peru. CDC Globeleq and DB Capital Partners acquired Southern Cone Power Peru from EWO Holdings, an affiliate of Entergy Corp, in March 2002.

At a time when many North American and European power companies are divesting Latin American assets, CDC continues to reiterate its commitment to the power sector in emerging markets by supporting CDC Globeleq's acquisition of strategic interests in high quality private power companies that are competitively placed in their respective markets. The bond issue has served to mobilize third party capital alongside CDC's capital helping fulfil a key CDC objective.

Commenting on the bond issue, Joe Lessard, CDC Globeleq's regional head, said:

"We are pleased to have successfully completed this issue. Strategically, it provides us with a very useful platform from which to further develop our presence in South America."

CDC Globeleq, the recently established power business of CDC Group plc, owns interests in 22 different power businesses across Latin America, Africa and Asia.