Renewable

June 29 (Renewables Now) - Spanish renewables developer and energy trader Ignis Energia is looking to sell a minority stake in its business to raise funds for the development of 3,000 MW of projects, Spain-based business news outlet Expansion reported on Tuesday.

The company has hired US investment bank Citigroup Inc (NYSE:C) to help it find a financial partner willing to contribute EUR 500 million (USD 594.9m) for the renewables development in exchange for a stake, Expansion reported citing several different sources.

The transaction would take the form of a EUR-500-million capital increase on the part of Ignis Energia, with the goal of having it fully subscribed by a venture capital firm or an infrastructure fund, according to the report.

Ignis Energia would part with a minority portion of its share capital, but would allow the eventual partner to take control of the company in exchange for a similar volume of investment, Expansion wrote.

Established in 2015, Ignis Energia is an integrated energy company providing a range of development and construction services in the renewables sector. It also manages assets and represents renewables and conventional power plants in the electricity and gas markets and supplies energy to final consumers.

According to its website, Ignis Energia has 14,200 MW of renewables in the development portfolio and 2,900 MW of assets under management as of 2020. The company says it grossed EUR 130 million in revenues last year.

(EUR 1.0 = USD 1.19)