Evwind, Other renewables

Abengoa and the US firm EIG Global Energy Partners sign an agreement to jointly invest in Concentrated Solar Power (CSP)

Abengoa and the US firm EIG Global Energy Partners sign an agreement to jointly invest in the development of Abengoa’s Concentrated Solar Power (CSP) projects under construction.
Abengoa and the US firm EIG Global Energy Partners sign an agreement to jointly invest in the development of Abengoa’s  Concentrated Solar Power (CSP) projects under construction.
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.