AES Agrees to Sell its Equity Interest in Businesses in the Philippines for $1.05 Billion; Proceeds to be Used to Accelerate Parent Debt Pay Down

ARLINGTON, Va.–(BUSINESS WIRE)–The
AES Corporation (NYSE:AES) announced today that it has entered into
an agreement to sell its entire 51% equity interest in Masin-AES Pte.
Ltd., a subsidiary of AES that owns AES' business interests in the
Philippines, to SMC Global Power Holdings Corp. (SMC Global Power) for
$1.05 billion in proceeds to AES. The sale includes AES’ 51% equity
interest in the 630 MW Masinloc coal-fired power plant in operation, the
335 MW Masinloc 2 coal-fired power plant under construction and the 10
MW Masinloc energy storage project in operation.

“We are very proud of our operational and commercial success in the
Philippines, enabling Masinloc to be a strong and growing business in
the dynamic Philippine energy market,” said Andrés
Gluski, AES President and Chief Executive Officer. “We will use the
proceeds from the sale to pay down Parent debt, which will allow us to
achieve investment grade metrics one year early, in 2019. Further, we
are establishing a goal to attain investment grade ratings by 2020.”

The transaction is expected to close in the first half of 2018, subject
to regulatory approval by the Philippine Competition Commission (PCC).
SMC Global Power is also purchasing the remaining 49% equity interest in
the same assets, held by Electricity Generating Public Company Limited
(EGCO Group), a Thailand-based Independent Power Producer, for $850
million. The transaction has a total enterprise value of approximately
$2.4 billion.

In 2008, AES purchased a 92% interest in Masinloc, with the
International Finance Corporation (IFC) as a minority partner, for total
enterprise value of $1.1 billion. The acquisition was funded with equity
contributed by AES and IFC and $635 million of non-recourse debt. In
2014, AES sold 41% of Masinloc to EGCO Group for $453 million.

About AES

The AES Corporation (NYSE:AES) is a Fortune 200 global power company. We
provide affordable, sustainable energy to 16 countries through our
diverse portfolio of distribution businesses as well as thermal and
renewable generation facilities. Our workforce of 18,000 people is
committed to operational excellence and meeting the world’s changing
power needs. Our 2016 revenues were $14 billion and we own and manage
$36 billion in total assets. To learn more, please visit www.aes.com.
Follow AES on Twitter @TheAESCorp.

AES Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning
of the Securities Act of 1933 and of the Securities Exchange Act of
1934. Such forward-looking statements include, but are not limited to,
those related to future earnings, growth and financial and operating
performance. Forward-looking statements are not intended to be a
guarantee of future results, but instead constitute AES’ current
expectations based on reasonable assumptions. Forecasted financial
information is based on certain material assumptions. These assumptions
include, but are not limited to, our accurate projections of future
interest rates, commodity price and foreign currency pricing, continued
normal levels of operating performance and electricity volume at our
distribution companies and operational performance at our generation
businesses consistent with historical levels, as well as achievements of
planned productivity improvements and incremental growth investments at
normalized investment levels and rates of return consistent with prior
experience.

Actual results could differ materially from those projected in our
forward-looking statements due to risks, uncertainties and other
factors. Important factors that could affect actual results are
discussed in AES’ filings with the Securities and Exchange Commission
(the “SEC”), including, but not limited to, the risks discussed under
Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in
AES’ 2016 Annual Report on Form 10-K and in subsequent reports filed
with the SEC. Readers are encouraged to read AES’ filings to learn more
about the risk factors associated with AES’ business. AES undertakes no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company’s 2016 Annual Report
on Form 10-K dated on or about February 27, 2017 with the SEC may obtain
a copy (excluding Exhibits) without charge by addressing a request to
the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson
Boulevard, Arlington, Virginia 22203. Exhibits also may be requested,
but a charge equal to the reproduction cost thereof will be made. A copy
of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.

Contacts

For The AES Corporation:
Investors:
Ahmed Pasha, 703-682-6451
or
Media:
Amy
Ackerman, 703-682-6399