Abengoa refinances two thermal power projects

According to sources, Abengoa SA has completed the first bond offering in Spain for a clean power project. Abengoa raised €285 million ($318 million) to refinance its Solaben Electricidad 1 and Solaben Electricidad 6 solar-thermal power plants.

The Seville-based company priced the deal on Sept. 25th, before its Abengoa Yield holding company acquired the facilities.

Abengoa’s shares have slumped this year as it struggles to shore up its balance sheet. Completing this deal is more a sign of investors’ interest in this type of bond, backed by a steady stream of long-term revenue, than in a renewed sense of confidence in the company. The Spanish renewable energy company lost almost two-thirds of its market value in the past six months,

The Solaben bonds mature in about 19 years and have a coupon of 3.758 percent. Citigroup Inc., Credit Agricole SA and Banco Santander SA led the deal, according to the people who were familiar with the deal. Standard & Poor’s rated the bonds BBB in July, two levels above junk.

The Solaben 1 and Solaben 6 plants each have 50 megawatts of capacity and began operations in Spain’s Extremadura region in 2013.

The plants employ the parabolic trough technology. Parabolic-shaped mirrors are set on structures that track the movement of the sun, and solar radiation is concentrated on a receiver tube. Inside the tube flows a heat-absorbing fluid, which reaches approximately 750 degrees Fahrenheit. This fluid transfers the thermal energy to then transform water into steam, which drives a turbine to generate electricity.