Abengoa and EIG partner for renewable energy developments

6 January 2015 (Last Updated January 6th, 2015 18:30)

Abengoa has formed a partnership with US-based infrastructure investor EIG Global Energy Partners to manage and fund its renewable energy projects.

Abengoa has formed a partnership with US-based infrastructure investor EIG Global Energy Partners to manage and fund its renewable energy projects.

These projects are presently under construction.

According to the non-binding agreement signed by the two parties, they will make joint investments in New Company (Newco) in order to develop already contracted Abengoa developments in countries including the US, Brazil, Chile, and Mexico.

The projects are expected to involve an investment of more than $9.5bn, in which EIG will own a major stake.

"The projects are expected to involve an investment of more than $9.5bn, in which EIG will own a major stake."

Newco, consequently, will sign an existing right of first offer agreement between Abengoa and Abengoa Yield, in order to reinforce growth opportunities for the latter.

The joint venture will also reinvest in new projects to be contracted later on by Abengoa.

The deal is in the due diligence phase, and the binding agreement process is likely to be concluded by the end of January.

Abengoa and EIG have been partners since 2007, when they first invested in a French ethanol plant development together.

EIG is a specialist investor in energy and energy-related infrastructure, managing around $15bn under its portfolio.