GE Energy Financial Services, Growing Internationally, Forms Power Transmission Line Partnership with Abengoa in Chile
Growing in international markets with strong investment frameworks, GE Energy Financial Services announced today that it has formed a partnership with Abengoa –– the leading Spanish engineering, bioenergy, environmental services and IT group –– to own power transmission lines in Chile.
GE Energy Financial Services will acquire an 80 percent equity interest in the partnership for $24.4 million. Abengoa will hold the remaining 20 percent. The partnership will own three 220kV transmission lines, built and previously owned by Abengoa, spanning 295 kilometers (183 miles) in Chile. Abengoa will continue as lead manager of the three transmission line companies: the Crucero–El Abra line, with a capacity of 150MW, feeding power from the main northern grid to CODELCO's El Abra copper mine; the Santa Barbara–Trupán line, with a capacity of 450MW, transmitting power from the Pangue hydroelectric plant to the central grid; and the Ralco–Charrúa line, with a capacity of 570MW, carrying power from the Ralco hydroelectric plant to the central grid.
"Abengoa's operating experience and Chile's positive environment for energy investment, more than a decade after the privatization of the country's electric utility industry, have enabled this transaction," said Tony Shizari, Managing Director at GE Energy Financial Services. "Chile is an attractive growth target for our investment capital, particularly in established operations such as these three transmission lines."
Abengoa spokesperson Antonio Merino Ciudad, director of international structured finance, said: "This partnership combines the management and financial strengths of two leading international energy groups, and enables Abengoa to use the sale proceeds for further development in the Chilean power transmission sector. We look forward to exploring additional opportunities with GE Energy Financial Services."
Abengoa was advised by BNP Paribas and the Urenda, Rencoret, Orrego y Dörr law firm. GE Energy Financial Services was advised by the Claro y Cia law firm.
Abengoa, a listed industrial and technology company with stock capital in excess of 657 million euros (31/12/2004), provides solutions for Sustainable Development, the Information and Knowledge Society, and the Creation of Infrastructures. It currently operates in four large fields: Bioenergy, where it is the world's No. 2 bioethanol producer; Environmental Services, where it is leader in Europe in certain segments of the industrial waste market; Information Technologies, where it is one of the main role–players at international level, with operations in Europe, the Americas and Asia; and Industrial Engineering and Construction, where it is leader in Spain and Latin America. (www.abengoa.com)
GE (NYSE: GE) is Imagination at Work –– a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit www.ge.com.
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