Abengoa Announces Final Agreement With EIG for Investment in Abengoa Projects Warehouse 1
March 27 2015 - 8:16AM
Abengoa (MCE: ABG.B/P SM) (Nasdaq:ABGB), the international company
that applies innovative technology solutions for sustainability in
the energy and environment sectors, announces that Abengoa and the
energy and infrastructure investor, EIG Global Energy Partners
("EIG"), have signed the Investment and Contribution Agreement,
reaching therefore the final Abengoa Projects Warehouse 1 (APW-1)
agreement to finance the construction of the projects that will be
transferred to APW-1.
As part of the transaction, the newly formed company, APW-1,
will acquire a portfolio of selected Abengoa projects under
construction, including renewable and conventional power generation
and power transmission assets in different geographies including
Mexico, Brazil and Chile. The projects will be acquired
progressively, with the first such projects expected to be Atacama
I & II (STE and PV) in Chile, A3T and A4T in México, and a
participation in the Brazilian T&D lines.
To this end, APW-1's initial equity commitment will be in the
range of US$2 billion, of which 55 % will be invested by EIG
managed funds (US$1.1 billion), and the remaining 45 % by Abengoa.
Abengoa will have a non-controlling ownership in APW-1, so this
will lead to the non-consolidation of certain projects in Abengoa's
balance sheet. Abengoa expects to receive an initial payment of
approximately US$500 million for investments already made in these
projects.
Abengoa and EIG will undertake further discussions regarding the
possibility of both Abengoa and EIG-managed funds jointly providing
additional investment funding, not to exceed US$500 million, to
facilitate APW-1's acquisition of additional projects, subject to
Abengoa and EIG agreeing on mutually acceptable investment
terms.
APW-1 has adhered to the existing ROFO (Right of First Offer)
agreement between Abengoa and Abengoa Yield (Nasdaq:ABY),
reinforcing the growth opportunities for Abengoa Yield.
Additionally, as part of the agreement, Abengoa and APW-1 have also
signed a new ROFO agreement with Abengoa to allow APW-1 to invest
in new projects awarded to Abengoa. The financing of those new
projects will come either from new equity contributions, from the
reinvestment of the initial equity once the first set of projects
are completed and sold, or from a combination of both.
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. EIG is a leading specialist investor in
energy and energy-related infrastructure based in Washington, DC
with approximately US$15 billion in assets under management.
Through APW-1, Abengoa and EIG have transformed this successful
project by project investment venture over the last 7 years, into a
long term strategic business alliance.
Cautionary Note Regarding Forward-Looking Statements
This release may contain forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. We caution you that a number of important factors
could cause actual results to differ significantly from these
forward-looking statements.
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:
Ignacio Garcia Alvear
Tel. +34 954 93 71 11
E-mail: ir@abengoa.com