China-backed State Grid evaluates Abengoa’s Brazilian assets

China State Grid Corp. has shown interest in acquiring Abengoa S.A.’s assets under construction in Brazil.

Officials from the state-owned firm visited Abengoa’s energy transmission project sites in Brazil which are under construction to evaluate a takeover.

According to sources, these assets comprise of Abengoa’s portfolio of assets whose construction had stalled last year when the firm ran into financial problems.

Sources further stated that the Brazilian government wanted to avoid a piecemeal sale of Abengoa’s Brazilian assets to avoid delays. Some of the major assets include a major transmission line linking the Belo Monte hydroelectric dam in the Amazon to consumer markets.

State Grid has invested more than $1bn in Brazil’s energy sector since 2010.

Abengoa has about 6,000 kms of transmission lines which are under construction, requiring billions of dollars in investments.

Further, the company has debts of more than BRL 800m ($218m) with equipment suppliers in the country, according to the electricity industry association Abinee.

Source: Reuters

Abengoa to sell 70mw wind farm in Uruguay to Invenergy

Spanish renewable energy firm Abengoa S.A., commenced sale of its 70mw Campo Palomas wind energy farm in Uruguay to Invenergy Wind LLC for a total consideration price of $37.5m which it would utilize to pay off debt on the plant. The company had outlined this plant as part of its planned divestitures.

Abengoa would continue constructing the $49m plant which was awarded by state-owned firm Electric Power Plants & Transmissions (UTE). Commercial operations at the plant would commence by February 2017.

Invenergy secured financing from Inter-American Investment Corp. DNB served as mandated lead arranger and a participant in the B-loan. Voltiq advised the company on the debt transaction.

Source: SeeNews