Abengoa asks for EUR-249m lifeline from Spanish state

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March 19 (Renewables Now) - Spanish sustainable infrastructure builder and renewable energy group Abengoa SA said that its debt special purpose vehicle (SPV) Abenewco 1 has applied for EUR 249 million (USD 296.2m) in the form of a temporary state aid as part of a financial plan to ensure its future.

Abenewco 1 is seeking funds from the Spanish state holding company SEPI under the national coronavirus economic recovery package, according to a bourse filing on Wednesday.

Abengoa said the SPV has devised a three-phase plan, which besides SEPI financing, includes bringing in a new investor.

Abenewco 1 has received a non-binding offer from a group of investors led by TerraMar Capital LLC, consisting of a EUR-150-million loan and EUR 50 million equity investment.

TerraMar would extend the loan part in two phases, after which Abenewco 1 would carry out a capital increase to be fully subscribed by the new investor. TerraMar is targeting 70% of Abenewco’s share capital, Abengoa said.

In February 2020, Abengoa filed for and obtained court approval to declare bankruptcy after some of its creditors rejected to extend the deadline for negotiating a restructuring agreement.

The company recently agreed to sell its entire stake in a 100-MW CSP plant in South Africa along with a 46% interest in the plant's O&M provider to French utility group Engie SA (EPA:ENGI) to repay its debt.

(EUR 1.0 = USD 1.19)

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Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.

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