Invenergy purchases from Abengoa and Closes Financing on Campo Palomas Wind Farm

Abengoa has reached an agreement with a subsidiary of Invenergy Wind LLC (Invenergy) for the sale of the 70 MW Campo Palomas wind farm, located in Salto, Uruguay.

The facility is currently under construction and it will have the capacity to generate 70 MW of power from 35 Vestas V110, of 2.0 MW each, wind turbines when commercial operation commences in February 2017.

The state-owned utility Usinas & Trasmisiones Electricas (UTE) will be the power purchaser for the full capacity of the wind farm under a long-term lease agreement. Abengoa will remain responsible for implementing the construction project for an amount of US$49 million. 

The sale of Campo Palomas involves the release of the company´s obligations for US$37.5 million of debt and associated guarantees. Similarly, it enables compliance with all contractual conditions with Usinas & Trasmisiones Electricas (UTE), Uruguay's government-owned power company, as the leading supplier of wind turbines.

Invenergy was advised on the debt transaction by Voltiq, based in Madrid. Project financing was provided by the Inter-American Investment Corporation, and DNB acted as the mandated lead arranger and B-loan participant.

Matthew Olive, Invenergy’s Vice President of Development and Origination for the Americas, said:

“We’re very pleased to close on the Campo Palomas Wind Farm as it advances and strengthens Invenergy’s commitment to Latin America. With power generation at approximately 90 percent renewables, Uruguay is a global leader in renewables, and this is a market that we are excited to enter.”

This operation is part of the divestment policy of Abengoa and represents further progress in the feasibility process in which the company is currently carrying out. Abengoa also recently announced the sale of its stake in the solar power plant Shams-1, located in United Arab Emirates, as well as other properties such as the former headquarters of the company in Madrid.