AES Corporation (NYSE:AES) today announced that Chivor S.A. E.S.P., an indirect subsidiary located in Colombia and owned through AES Gener S.A., successfully completed a US$253 million refinancing in the international capital markets and Colombian bank markets. This refinancing represents AES's fifth significant subsidiary transaction completed this year in emerging markets.

As a part of the refinancing, Chivor completed the sale of US$170 million of 9 3/4% Senior Secured Notes due in 2014. Chivor also closed a local peso-denominated Colombian bank facility for approximately US$83 million with a 7-year maturity. Chivor used the net proceeds of the Notes, together with the net proceeds of the local syndicated loan and Chivor's available cash, to repay in full Chivor's existing outstanding syndicated loan facility of approximately US$260 million.

"The demand for both debt tranches among the investor community exceeded our expectations and we greatly appreciate this show of confidence in the company and country," said Felipe Ceron, AES Vice President of Latin American Generation and CEO of AES Gener. "These transactions will significantly improve our competitive position in the Colombian power sector."

"The successful refinancing of Chivor is the culmination of three years' effort to improve our company's financial flexibility," stated Federico Echavarria, CEO of Chivor "The new capital structure will enhance our access to domestic and international capital markets and will improve our overall free cash flow."

Chivor is a 1000 MW hydroelectric facility. It generates 11% of Colombia's electricity and is the third largest hydroelectric generator in the country.

This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the "Order") or (iii) high net worth entities falling within Article 49(2) of the Order, and other persons to whom it may lawfully be communicated by an unauthorized person (all such persons together being referred to as "relevant persons"). The notes will only be available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such notes will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this communication or any of its contents.

The Notes cannot be offered or sold within Colombia.

The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the Securities Act's registration requirements.

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Statements in this press release regarding AES Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Cautionary Statements and Risk Factors" in the Company's 2003 Form 10-K.

About AES

AES is a leading global power company, with 2003 revenues of $8.4 billion. AES operates in 27 countries, generating 44,000 megawatts of electricity through 111 power facilities and delivers electricity through 17 distribution companies. Our 30,000 people are committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at media@aes.com.