Abengoa advances divestments of Yieldco and Peruvian transmission line

13 November 2018 - 12:00 am UTC

Abengoa announced that it reached an agreement to transfer the Peruvian ATN3 transmission lines to its joint venture company with Algonquin, AAGES, according to its 3Q18 earnings call on 13 November. 

Abengoa CEO Víctor Pastor said that the agreement with AAGES will close in early 2019 and that the company has also agreed to sell its remaining 16.5% stake in Atlantica Yield for USD 20.90 per share. 

The sale of the 16.5% stake is due to close in the coming days, according to the executive. 

Abengoa won the 30-year, USD 160m ATN3 220 kV transmission line Machupicchu-Quencoro-Onocora-Tintaya transmission project in February 2013 in a Proinversión tender process. 

The executive also mentioned that AAGES has prequalified in consortium with Spanish developer Elecnor for ETESA’s Fourth Electricity Transmission Line concession in Panama, as reported by Inframation.

AAGES has a target to invest between USD 150m-200m per year in equity by 2020. 

Another asset up for sale, the 220MW A3T power plant in Mexico, has now completed construction, its output is 78% contracted under PPA contracts and is delivering electricity to the grid, according to Pastor. 

Abengoa announced on 30 September that the company will issue a convertible instrument at the level of the A3T plant and seek a long-term refinancing in the near future, according to the 30 September release. 

According to Pastor, USD 91m for the project was released from an escrow account in April 2018 and the remaining funds will be released once the company completes the sale of its 16.5% stake in Atlantica Yield. 

Abengoa also said on the 3Q18 earnings call that the company has reached a preliminary agreement for the sale of its stake in the Ténès desalination plant in Algeria but that the sale agreement is subject to the approval of the Algerian government.

The company’s revenues were down to EUR 896m (USD 1.01bn) for the first nine months of 2018 versus EUR 1.1bn in the same period of 2017. However, the company’s EBITDA was up 96% at EUR 135m versus EUR 69m in 2017 and the executive pointed to a backlog of EUR 1.8bn as the company adjusts to its new role as an EPC and O&M contractor in its major markets. 

Abengoa Peru announced on 9 November that it had signed a long-term, USD 30m financing with Darby Overseas Investments, a private equity arm of investment manager Franklin Templeton, to repay outstanding debts and to provide new liquidity for the development of current and future projects locally.

 

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