Abengoa and the US Firm EIG Global Energy Partners Sign an Agreement to Jointly Invest in the Development of Abengoa's Projec...
January 06 2015 - 2:55AM
Abengoa (MCE:ABG.B/P SM) (Nasdaq:ABGB), the international company
that applies innovative technology solutions for sustainability in
the energy and environment sectors, and the energy and
infrastructure investor EIG Global Energy Partners ("EIG") have
entered into a non-binding agreement with the objective of jointly
investing in a New Company (Newco) for the development of the
already contracted portfolio of Abengoa's projects under
construction. EIG is a leading specialist investor in energy and
energy-related infrastructure based in Washington, DC with
approximately US$15 billion under management.
A portfolio of projects has been defined including conventional
generation and renewable energy assets and transmission lines in
different geographies, including US, Mexico, Brazil and Chile for a
total investment amount above US$9.5 billion, including equity and
non-recourse debt.
The Newco will sign the existing ROFO (Right of First Offer)
agreement between Abengoa and Abengoa Yield (Nasdaq:ABY),
reinforcing the growth opportunities for Abengoa Yield while
allowing the Newco to reinvest in new projects contracted by
Abengoa in the future.
As part of this agreement, EIG will hold a majority stake in the
Newco, that will consolidate these projects, with Abengoa retaining
a minority stake. As of today, the transaction is under
due-diligence phase and the objective is to execute a binding
agreement by the end of January ensuring a prompt investment in the
vehicle.
This strategic alliance allows these two global groups to join
up forces to finance power and infrastructure projects under
construction around the world. Abengoa and EIG have maintained a
successful relationship since 2007 when EIG co-invested with
Abengoa for the development of an ethanol plant in France.
About Abengoa
Abengoa (MCE:ABG.B/P SM) (Nasdaq:ABGB) applies innovative
technology solutions for sustainability in the energy and
environment sectors, generating electricity from renewable
resources, converting biomass into biofuels and producing drinking
water from sea water. (www.abengoa.com)
CONTACT: Communication Department
Patricia Malo de Molina Melendez.
Tel: +34 954 93 71 11
E-mail: communication@abengoa.com
Investor relations:
Barbara Zubiria Furest.
Tel: +34 954 93 71 11
E-mail: ir@abengoa.com