Atlantica Yield has completed the acquisition of a 50 MW operating wind farm in Uruguay from Italy’s Enel Green Power (EGP), according to 14 December press releases.
An EGP statement from the same date said that Atlantica Yield has acquired Enel Green Power Uruguay S.A., which is the 100% owner of the 50MW Melowind facility, located in Cerro Largo, some 200 miles from Montevideo, Uruguay.
In its 14 December release, Atlantica Yield said it paid USD 45m in equity for the asset with an unspecified amount of additional project finance provided by Santander. EGP said that it received USD 120m for its subsidiary, equal to the company’s enterprise value.
The wind farm has been in operation since 2015 and has a 20-year USD-denominated power purchase agreement for 100% of the electricity produced with state-owned power company UTE.
Santiago Seage, ceo of Atlantica Yield, said in a statement, “Melowind fits our strategy, brings a long contract with an offtaker with whom we already work and is a very complementary asset that we expect will have clear synergies with our existing wind portfolio.”
In its 14 December release, EGP said that the transaction is part of the disposal program of non-core assets, which will allow for the reallocation of resources to areas with a greater growth margin and potential for the Group.
Separately, Atlantica has reached a preliminary agreement with Algonquin Power and Utilities Corp. to co-invest in Sugar Creek, a 200 MW wind project in Illinois.
Construction is expected to begin in the first half of 2019 and end in 2020.
The acquisition will be the first drop-down from Algonquin, the new strategic partner of Atlantica Yield.