Spain's Dominion Energy agrees capital hike to fund over 1 GW of renewables

Wind and solar together. Author: Gerry Machen.

December 3 (Renewables Now) - Dominion Energy SL, the renewables business of Spanish engineering services company Global Dominion Access SA (BME:DOM), will carry out a capital increase to raise money for the development of over 1 GW of projects in Europe and Latin America.

An entity managed by Madrid-based real assets specialist Incus Capital will invest EUR 50 million (USD 56.6m) in Dominion Energy and gain a stake of 23.4% after the capital hike transaction, Global Dominion Access said on Thursday.

The parent company said that it will also contribute with EUR 25 million in the renewables unit, which will be valued EUR 213 million once the deal closes. Global Dominion Access will hold the remaining 76.6% in Dominion Energy.

The funds will help transform Dominion Energy into an independent power producer (IPP) with renewable energy projects totalling over 1 GW under development. These projects are located in Italy, Spain, Portugal, Mexico, the Dominican Republic and other places, Global Dominion Access says.

“This deal enables us to crystallize the real value of our renewable energy business while providing us with the necessary funds to continue with our ambitious roadmap for the coming years,” commented Mikel Barandiaran, CEO at Global Dominion Access.

Since its founding in 2016, Dominion Energy has executed projects under the build-and-sell model alongside its affiliate Bas Projects Corporation SL, in which it holds 35% interest.

Based on Global Dominion’s bourse filing on Thursday, Dominion Energy and Bas will be in the IPP business together and develop the projects applying the build-to-hold strategy.

The new crop of projects will be executed in the next five years. Dominion Energy expects its wind and solar PV farms in Mexico and the Dominican Republic to commence operation in the first quarter of 2022, enabling the business to finalise the trimester with 184 MW of operating assets under management, Global Dominion Access said.

Swiss investment bank Mirabaud served as the financial advisor to Global Dominion in the capital increase agreement.

(EUR 1.0 = USD 1.131)

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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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