Spanish company Abengoa has signed a €614m deal to sell 450MW of concentrating solar power (CSP) assets to its renewable yieldco vehicle company Abengoa Yield.

Board of directors of both the firms have approved the acquisition which represents the third asset package deal between Abengoa and Abengoa Yield.

However, closing of the deal is subject to customary approvals.

Abengoa will be entitled to a 51% capital increase that Abengoa Yield has priced to finance this acquisition.

"Abengoa will be entitled to a 51% capital increase that Abengoa Yield has priced to finance this acquisition."

The assets comprise of the Helios 1 and 2 solar complex, totalling 100MW of generation capacity and Solnova 1, 3 and 4 solar firms having a combined generation capacity of 150MW.

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Another 70% stake has also been acquired in Helioenergy 1 & 2 solar complex (100 MW), in which Abengoa Yield already owns a 30 % stake.

The Helios, Solnova and Helioenergy complexes are in Spain.

The fourth asset includes a 51% share for the 100MW Kaxu solar plant, which is located in the Kalahari desert in South Africa.

Provision for a call option agreement to purchase up to $100m in concessional assets at a 12% yield will be included in the transaction. The deal in this regard was signed between the two firms in December 2014.

Abengoa Yield expects the new acquisition to generate incremental run rate cash, which will be available for yearly distribution of around $63m before debt service associated with acquisition financing.

Abengoa Yield had formed an exclusive partnership with Abengoa according to which the former gets right of first offer on any proposed sale, transfer or other disposition in the latter’s contracted renewable energy, conventional power, electric transmission or water assets.

The firms mainly deal with renewable assets in the US, Canada, Mexico, Chile, Peru, Uruguay, Brazil, Colombia and the European Union.

Spain-based Abengoa is a developer for sustainable and innovative technology solutions for the energy and environment sectors.

As well as promoting power generation from renewable resources, the firm is also involved in converting biomass to biofuels and producing potable water from sea water.