AES Tiete Prices $300 Million Bond Issue in Brazil; AES Tiete Offering Refinances Existing Debt.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--May 16, 2001

The AES Corporation (NYSE:AES) announced today that its subsidiary, AES Tiete Holdings, Ltd., has closed a $300 million 15 year bond offering at 11.50%.

This bond offering has an investment grade rating (BBB- and Baa3 by Fitch and Moodys, respectively) and carries both inconvertibility and devaluation coverage issued by the United States Overseas Private Investment Corporation (OPIC). Banc of America Securities, LLC, served as lead underwriter on this offering.

The primary purpose of the issue was to refinance existing indebtedness, provided by the Brazilian National Development Bank (BNDES), that AES Tiete Holdings used in its acquisition of a controlling interest in AES Tiete, S.A. in 1999.

AES Tiete, S.A. is a hydroelectric generation company comprised of ten separate facilities with a total installed capacity of 2,651 MW serving the state of Sao Paulo, Brazil.

Luiz David Travesso, Vice President of AES, stated, "AES is excited to be the first company to receive long-term financing in Brazil. This financing is aided by the new OPIC devaluation facility. We have worked extremely hard in developing the devaluation product with both Banc of America Securities and OPIC and hope that it can be replicated throughout Brazil and in other countries where revenue streams in local currency are used to repay debt issued in foreign currency."

Dennis W. Bakke, President and Chief Executive Officer of AES, stated, "We were delighted to receive the support of Banc of America Securities and OPIC in completing this offering. AES is committed to arrange attractive financing structures in Brazil. We are also working with the leaders in Brazil to find ways of bringing online much needed new fossil-fuel fired generating capacity."

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Canada, Chile, China, Colombia, Dominican Republic, El Salvador, Georgia, Hungary, India, Italy, Kazakhstan, the Netherlands, Nigeria, Mexico, Oman, Pakistan, Panama, Sri Lanka, Ukraine, the United Kingdom, the United States and Venezuela.

The company's generating assets include interests in one hundred and sixty six facilities totaling over 58 gigawatts of capacity. AES's electricity distribution network has over 920,000 km of conductor and associated rights of way and sells over 126,000 gigawatt hours per year to over 17 million end-use customers.

In addition, through its various retail electricity supply businesses, the company sells electricity to over 154,000 end-use customers.

AES is dedicated to providing electricity worldwide in a socially responsible way.

This news release may include forward-looking statements. Actual events and results may differ materially from those projected. Factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, and readers are encouraged to read those filings to learn more about the risk factors associated with AES's businesses.

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.