This page contains a Flash digital edition of a book.
www.solar-pv-management.com

SolarXTRA ⟡ news digest

Engyco plans IPO

Initial focus on Spanish market with plans to raise

Engyco was founded by a group of industry leading individuals from the European utility and solar industries. Its intention is to offer a high dividend yield stock with significant growth prospects to its investors by rapidly building a large-scale independent electricity producing utility. This will be achieved by acquiring, on a de-geared basis, existing power-producing photovoltaic operations, initially in Spain.

Engyco is pleased to provide an update on its progress towards establishing itself as the first European listed solar power utility. Engyco intends to pursue its corporate objectives with equity funding raised from institutional investors through admission to the Official List of the London Stock Exchange. Engyco has appointed Numis Securities Limited and Ambrian Partners as advisers.

In May 2007, the Spanish Government offered a particularly attractive incentive regime establishing a feed-in tariff (RD 661/2007) offering unprecedented returns to developers for solar plants in operation before 28 September 2008. Once an RD 661 licence has been granted, off-take pricing is set for the life of an asset at full tariff for 25 years and 80 per cent. of tariff thereafter, with annual increases linked to Spanish inflation less 0.25 per cent. until 2012 and less 0.5 per cent.

The establishment of such an attractive tariff regime, together with the abundant availability of debt at the time, resulted in a very large quantity of such solar assets being built, often by owners for whom solar power is a non-core activity. In 2008 Spain accounted for half of global solar new build (around 2,500MWp) and c20 per cent. of global aggregate capacity, bringing the installed value under RD 661 to approximately €15 billion. Since the end of 2008, the cost of capital has risen sharply and Spain has experienced a collapse in its real estate, construction and property sectors. As a result, many owners of RD 661 solar assets are willing to sell these non-core assets, which provides a plentiful supply of operating solar assets for Engyco to acquire.

103

Engyco is progressing with its IPO and intends to raise up to €1bn in equity funding from institutional investors through admission to the Official List of the London Stock Exchange. Engyco has appointed Numis Securities Limited and Ambrian Partners as advisers. Engyco’s differentiated strategy is to purchase solar assets on a de-geared basis, paying off existing project finance debt and it has in hand signed agreements with vendors of solar assets producing 86MWp for approximately €640 million. Engyco continues to pursue other opportunities to acquire additional solar assets. As Engyco’s approach is to acquire assets for cash, they are seen as a preferred purchaser in the market at present. Following the acquisition of assets, Engyco intends to use the technical expertise of its board and management team to make certain operational and financing improvements, in order to improve the productivity and economic returns of the acquired assets.

John Roberts, Chairman of Engyco, commented: “I am delighted to chair a board of such talent and experience. The opportunity that Engyco has identified is compelling and the team which has been assembled to pursue it could not be stronger. The assets which we intend to manage enjoy both favourable operating conditions and a highly attractive pricing regime. I am confident that we will be successful in achieving our objectives, including that of becoming the first UK listed solar utility.”

Engyco has made a series of new appointments to its Board, which add to the wealth of industry and technical expertise already at its disposal:

Appointment of John Roberts as Non-Executive Chairman John Roberts is one of the world’s most experienced operators in the electricity industry, having worked for over 25 years in top level positions at Manweb, South Wales Electricty and Hyder, before serving as Chief Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104
Produced with Yudu - www.yudu.com