AES · 10-Q · 2026Q3 · Full report

Interest Rate Exposure

AES CORP · 2026-11-03 · Importance 48 · Surprise 6

As of September 30, 2026, AES had $32.7 billion of total gross debt, of which approximately $10.4 billion accrued interest at variable rates. AES’s maximum outstanding hedges protecting current and expected variable-rate exposure totaled $8.3 billion on that date. The company said it has historically sought to maintain at least 70% of consolidated long-term obligations at fixed rates, and the Parent Company had no material unhedged variable-rate debt exposure.

Key facts

• AES had $32.7 billion of gross debt outstanding at September 30, 2026, of which approximately $10.4 billion bore variable interest rates. source
• AES had $8.3 billion of maximum outstanding hedges against current and expected variable-rate exposure as of September 30, 2026. source
• Most AES corporate and subsidiary debt is at fixed rates, but higher rates can increase future financing costs on floating-rate debt and future refinancings; AES actively hedges to reduce future rate uncertainty. source
• Higher interest rates increase financing costs for new AES projects under development that have not secured financing and may negatively affect returns or project competitiveness. source
• AES typically seeks to enter interest-rate hedges shortly after signing PPAs to mitigate rising-rate risk before securing long-term financing. source
• AES has historically sought to maintain at least 70% of consolidated long-term obligations at fixed interest rates, including through interest-rate swaps. source