Arguing that from 2008 to 2013 the Guatemalan National Energy Commission set a maximum amount that electricity distribution companies could charge the user, Teco Energy, a company that was a shareholder of Empresa Electrica de Guatemala, sued the country internationally.

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After hearing the case, the International Centre for Settlement of Investment Disputes (ICSID) ruled in favor of the company and the country was ordered to repair the damage caused to the corporate group.

Because Guatemala refused to pay in the first instance, the Supreme Court of New York ordered the seizure of $15.75 million from the Guatemalan State. These resources were to pay the interest on a debt that the country had issued internationally and was due on November 3, 2020.

In order to comply with the creditors of the sovereign debt, Guatemalan authorities were forced to comply with the court ruling.

In a statement dated November 24, the Ministry of Public Finance together with the Ministry of Economy, informed that "... today the payment to Teco Guatemala Holdings LLC (TECO) was made, which will allow the funds retained for payment to investors of sovereign bonds of the Republic of Guatemala, to be released."

"The Republic of Guatemala, as of this moment, normalizes its operations with the Bank of New York Mellon, contributing to maintain the good business and investment climate in the country," concludes the document.

More on this topic

Arbitration with Teco Energy: Embargo on Guatemala

November 2020

After receiving a ruling opposing the international arbitration disputed with Teco Energy, the New York State Supreme Court ordered the seizure of $15.75 million from Guatemala.

Teco Energy is a company that was a shareholder of Empresa Eléctrica de Guatemala and years ago claimed international arbitration, arguing that from 2008 to 2013 the National Energy Commission set a maximum amount that energy distribution companies could charge the user. This measure caused losses to the distributor.

Successful Eurobond Issuance from El Salvador

July 2019

The issue was announced at an initial rate of 7.5% and a 30-year term, and $1.097 million was issued, with total demand five times greater than the amount of the issue.

The issue was for a 30-year term, maturing in 2050 and with a 7.1246% coupon, informed the Central Reserve Bank (BCR).

Guatemala Issues $1.2 Billion in Eurobonds

May 2019

The government was able to issue $700 million over 30 years at a 6.12% rate, and $500 million over 10 years at a 4.9% rate.

The operation was carried out through the bank Citigroup Global Markets Inc, one of the three most important investment banks in the world, chosen through a competitive process, informed the Ministry of Finance.

TECO Energy Sues Guatemala

November 2010

The U.S. Corporation, a former shareholder of Empresa Eléctrica de Guatemala (EEGSA), sued the country before the ICSID in Washington.

The process is similar in its content to the one initiated by Spanish company Iberdrola (also a former shareholder of EEGSA) in December 2009, before the same institution, the International Center for Settlement of Investment Disputes (ICSID).