Abengoa Signs 1.4 Billion-Euro Syndicated Loan to Refinance Debt

Abengoa SA, a Spanish energy, water and environment company, signed a 1.4 billion-euro ($1.77 billion) syndicated loan to refinance debt.

The two-tranche revolving credit facility, which was oversubscribed by 140 percent, involved a group of 20 lenders, Abengoa said today in a statement. Nine banks including Banco Santander SA and HSBC Holdings Plc led the transaction, it said.

The deal extends the maturity of the Seville, Spain-based company’s debt by more than four years while reducing financing costs, covering its corporate needs until 2016. Tranche A repays its existing syndicated loan and tranche B will finance the development and construction of concession projects.

Abengoa is the biggest developer of solar-thermal power plants and is building the El Zapotillo aqueduct in Mexico, one of the world’s largest water projects. Its projects include renewable energy, power transmission and waste-to-energy plants. Its $721 million yieldco was listed in the U.S. in June.

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