Abengoa, EIG to Invest $2.5 Billion in New Joint Venture
(Bloomberg) — Abengoa SA and EIG Global Energy Partners
LLC will invest about $2.5 billion in a joint venture created to
acquire more than $9.2 billion of new clean-power projects.
The Spanish developer and the U.S. infrastructure investor
will set up Abengoa Projects Warehouse 1 in four to six weeks,
the Seville-based company said today. EIG will hold an initial
55 percent of the venture and Abengoa 45 percent through their
equity investments. The rest of the investment will come from
so-called non-recourse debt.
Abengoa shares rose 2.7 percent to 3 euros by the close
Tuesday in Madrid. The stock has surged 41 percent this year.
The venture, first announced Jan. 6, will buy projects
Abengoa is building like clean-energy plants and transmission
lines in countries such as the U.S., Mexico, Brazil and Chile.
It will sign a right-of-first-offer agreement between
Abengoa and its yieldco Abengoa Yield Plc. It will also sign a
deal giving it priority in investing in new projects that the
developer wins, according to the statement.
The new company plans to reinvest at least 100 percent of
the initial equity in a second group of projects, extending its
activity for the next eight years and adding another $6 billion
to $7 billion of value. Abengoa, whose works include power
lines, water, biofuels and solar projects, will hold a call to
update the market on Feb. 9, it said.
To contact the reporter on this story:
Marc Roca in London at
mroca6@bloomberg.net
To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Randall Hackley, Tony Barrett