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

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