AES Raises $75.5 Million to Finance 288 MW Power Facility in Australia.

ARLINGTON, Va.--(BUSINESS WIRE)--Sept. 3, 1997--The AES Corporation (NYSE: AES) announced Wednesday that a subsidiary has raised A$103.50 million (approximately US$75.5 million) of non-recourse project financing for its 288 MW kerosene-fired simple cycle power plant in Townsville, Queensland, Australia.

The project debt facility has been solely under-written by Societe Generale Australia Ltd. and is comprised of a 10 year term loan, a letter of credit facility and a short term revolving cash advance facility.

Low-cost peaking power from the facility will be sold to the Queensland Transitional Power Trading Corporation under a 10-year power purchase agreement. The simple cycle facility will be operated by a subsidiary of AES.

The project company, AES Mt. Stuart, is 100 percent owned by AES. A turnkey construction agreement has been signed with Nichimen Corporation, and the major equipment will be supplied by Mitsubishi Heavy Industries. Construction of the plant will start during the 4th quarter of 1997 and is scheduled to be completed on Jan. 1, 1999.

J. Stuart Ryan, managing director of AES Transpower, said, "We are extremely pleased with the comprehensive and creative financing that Societe Generale provided to the project. We are also grateful for the support of the City of Townsville that made it possible for us to develop this project in just over one year."

Dennis W. Bakke, president and CEO of AES, stated, "Our Mt. Stuart facility is the first greenfield project for AES in Australia. The low-cost, flexible plant will allow us to participate in the electric generation market in Eastern Australia and positions us for future expansion to a combined cycle facility once natural gas fuel is available."

Highlights of AES's business development successes in 1997 include the following:

-- In July, AES raised approximately $325 million in Senior Subordinated Notes and approximately $350 million in a common stock offering.

-- In June, AES funded Yangcheng, a $1.6 billion joint venture to build, own and operate a 2,100 MW mine-mouth, coal-fired power plant in China.

-- In June, AES and partners won a bid for 14.41% of Cemig, an integrated electric utility serving the State of Minas Gerais in Brazil.

-- In May, AES announced the completion of the amalgamation with AES China Generating Co. with AES.

-- In April, AES, along with its partner CEA, won a bid to acquire two electricity distribution companies, Eden and Edes, serving the Province of Buenos Aires, Argentina.

-- In April, AES won the right to build, own and operate a 600 MW gas-fired, combined cycle plant in Uruguaiana, Brazil.

- In March, AES completed a combined public offering of common stock and term convertible securities ("TECONS"), yielding net proceeds to the Company of approximately $390 million.

-- In February, AES entered into an agreement to acquire all of the international businesses of Destec Energy, Inc., consisting of five plants in operation and construction representing approximately 950 MW (based on AES's net equity ownership to be acquired), and numerous projects in various stages of development.

-- In February, a subsidiary of AES raised No. 112.5 million of non-recourse project financing for its 230 MW (net) gas-fired combined cycle plant in Barry, South Wales, United Kingdom.

-- In February, AES announced plans to build a 720 MW (net) gas-fired combined cycle plant in Pennsylvania to supply electricity to a subsidiary of GPU, Inc., pursuant to three restructured power purchase agreements.

-- In January, AES acquired an additional 2.4% interest in Light Servicos de Eletricidade S.A., a 3,800 MW integrated Brazilian utility, bringing AES's total interest to 13.75%.

-- In January, AES won a bid to build, own and operate a 484 MW (net) gas-fired combined cycle power plant in Merida, Mexico.

AES is a leading global power company that currently owns or has an interest in seventy-five power facilities totaling over 20,000 megawatts in the United States, Canada, Australia, Argentina, Brazil, Dominican Republic, Pakistan, the Netherlands, Hungary, Kazakstan, China and the United Kingdom.

In addition to having assets of $3.8 billion, the company has more than $5 billion of projects in construction or late stages of development. AES is dedicated to providing electricity worldwide in a socially responsible way.

For more general information visit our web site at www.aesc.com or contact investor relations at [e-mail] . The list aes-pr-announce is an automated mailing list and can be found on the investing page of our web site. Those who subscribe to this list will receive updates when AES issues a press release.

CONTACT: The AES Corporation

Kenneth R. Woodcock, 703/522-1315