Abengoa Sells First Assets to Yieldco for $323 Million

Sept. 22 (Bloomberg) — Abengoa SA, the Spanish energy
company that’s doubled in value this year, sold its first power
plants to a yield company it spun off in June.

Abengoa sold two solar power plants and a wind farm for
$323 million to Abengoa Yield Plc, the Seville-based company
said today in a statement. The solar facilities include 131
megawatts from projects in Spain and the 50-megawatt Cadonal
wind farm in Uruguay.

The yieldco structure allows the owner of the renewable
energy project to pool assets into a publicly traded entity that
pays dividends to its owner, part of an effort to reduce capital
costs and boost cash. Abengoa Yield raised $721 million in its
June initial public offering, another spin off in a field that
includes yieldcos for SunEdison Inc. and NRG Energy Inc.

The sales are expected to close by year-end, the company
said. Abengoa Yield expects to own 710 megawatts of renewable
and 300 megawatts of conventional generation as well as 1,018
miles (1,638 kilometers) of power transmission lines, it said in
a June filing.

Abengoa gained 1.8 percent to 4.35 euros at the close in
Madrid. Abengoa Yield fell 3.7 percent to $36.30 in New York.

To contact the reporter on this story:
Ehren Goossens in New York at
egoossens1@bloomberg.net

To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Tina Davis, Steven Frank

About BloombergNEF

BloombergNEF (BNEF), Bloomberg’s primary research service, covers clean energy, advanced transport, digital industry, innovative materials and commodities. We help corporate strategy, finance and policy professionals navigate change and generate opportunities.

Available online, on mobile and on the Terminal, BNEF is powered by Bloomberg’s global network of 19,000 employees in 176 locations, reporting 5,000 news stories a day.
 
Sign up for our free weekly newsletter →

Want to learn how we help our clients put it all together? Contact us