Iberdrola is considering selling its Spanish renewable assets

Iberdrola, a Spanish utility company that provides electricity, is considering selling part of its wind, solar, and gas assets in Spain. According to statements made by three sources to the news agency, the potential sale of the 2.4GW portfolio might bring in much than $700.0 million. According to what has been gathered, Iberdrola has been collaborating with Deutsche Bank on the sale of the renewable assets.

The bank has started the process of selling the property and is currently communicating with prospective purchasers, such as investors in infrastructure, fund managers, and industrial companies. According to two different sources, the portfolio include a combined cycle power plant (CCGT) with a capacity of 1.6 gigawatts, 300 megawatts of onshore wind capacity, and projects for the development of 500 megawatts of solar plants to integrate with the gas plant.

During times when there is less wind, rain, or sun in Spain, these assets might be able to play a vital role as a backup for the renewable assets that are already there. The valuation of the gas assets will determine the final price of the transaction because the assets were underutilized in Spain until the output there grew in the previous year. According to our sources, the process of selling the assets is still in its infancy, and Iberdrola may choose to postpone or even scrap its ambitions to sell the assets altogether.

Both Iberdrola and Deutsche Bank decided against providing a remark regarding the matter. Iberdrola plans to sell these assets in order to finance a three-year plan that includes investments of up to €47 billion ($51 billion), in order to keep its credit ratings and maintain a dividend pay-out of up to 75% of its earnings per share. The plan is designed to keep Iberdrola’s credit ratings and maintain a dividend pay-out of up to 75% of its earnings per share. Earlier in the week, it was reported that the utility was mulling over several opportunities to sell an interest in its renewable activities in the United States. Bloomberg cited anonymous sources who stated that the move was part of Iberdrola’s goal to attract new investors across all of its operations. They went on to say that conversations are now taking place, and a decision regarding the magnitude of any potential sale or the timing of such transaction has not yet been made.

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