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 response to three sources near the deal.
Barclays is advising on the transaction, which incorporates the creation of an organization that can personal the land, in response to the sources.
The land concerned is in Spain and Iberdrola is searching for gives 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 stated.
Iberdrola is aiming for the sale to worth the holding firm at 500 million euros ($553 million), one of many sources stated. 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 yr a 47 billion-euro funding plan in electrical energy networks, renewable power manufacturing and buyer companies in a push to stay one of many leaders in world renewable energy.
The transaction is a part of Iberdrola’s broader technique to decrease its value of capital after the surge in rates of interest over the past yr. The corporate has bought minority stakes in different enterprise to cut back debt and not too long ago it agreed to promote 13 energy vegetation in Mexico in a deal value $6 billion.
Iberdrola, which at the moment has 40 gigawatts of renewables capability all over the world, can pay hire to the brand new holding firm for a set variety of years.
The deal is being marketed to pension funds and different monetary buyers and Iberdrola would preserve an possibility to purchase again the 49% stake, two of the sources stated.
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Reporting by Andres Gonzalez Modifying by Elisa Martinuzzi and Mark Potter
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