Abengoa Signs Deal With US Firm EIG Global Energy To Develop Abengoa's Projects

(RTTNews) - Abengoa (ABGB), a company that applies innovative technology solutions for sustainability in the energy and environment sectors, Tuesday said it has entered into a non-binding agreement with the energy and infrastructure investor EIG Global Energy Partners.

The deal is with the objective of jointly investing in a New Company for the development of the already contracted portfolio of Abengoa's projects under construction.

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 $9.5 billion, including equity and non-recourse debt.

EIG is a specialist investor in energy and energy-related infrastructure based in Washington, DC with approximately $15 billion under management.

Abengoa said the new company will sign the existing ROFO (Right of First Offer) agreement between Abengoa and Abengoa Yield (ABY), reinforcing the growth opportunities for Abengoa Yield while allowing the new company to reinvest in new projects contracted by Abengoa in the future.

As part of this agreement, EIG will hold a majority stake in the new firm, which will consolidate these projects, with Abengoa retaining a minority stake. At present, 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.