LONDON, April 14 (Reuters) – Energy firm Iberdrola (IBE.MC) plans to promote and lease again land on which a few of its wind and photo voltaic farms are situated because it seeks to decrease its borrowing prices, in line with three sources near the deal.
Barclays is advising on the transaction, which incorporates the creation of an organization that can personal the land, in line with the sources.
The land concerned is in Spain and Iberdrola is on the lookout for presents for a stake of as much as 49% within the new holding firm to keep away from having to account for a part of the proceeds as debt, the individuals mentioned.
Iberdrola is aiming for the sale to worth the holding firm at 500 million euros ($553 million), one of many sources mentioned. Iberdrola will put 15,000 hectares of land into it, with plans so as to add extra in future, the supply added.
Iberdrola did not reply instantly to a request for remark. Barclays declined to remark.
Iberdrola unveiled final 12 months a 47 billion-euro funding plan in electrical energy networks, renewable vitality manufacturing and buyer companies in a push to stay one of many leaders in international renewable energy.
The transaction is a part of Iberdrola’s broader technique to decrease its price of capital after the surge in rates of interest during the last 12 months. The corporate has bought minority stakes in different enterprise to cut back debt and just lately it agreed to promote 13 energy crops in Mexico in a deal price $6 billion.
Iberdrola, which presently has 40 gigawatts of renewables capability all over the world, pays hire to the brand new holding firm for a set variety of years.
The deal is being marketed to pension funds and different monetary traders and Iberdrola would preserve an choice to purchase again the 49% stake, two of the sources mentioned.
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Reporting by Andres Gonzalez Enhancing by Elisa Martinuzzi and Mark Potter
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