Abengoa asks for EUR-249m lifeline from Spanish state

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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