March 5, 2018 – Abengoa (MCE: ABG/P:SM), the international company that applies innovative technology solutions for sustainability in the infrastructures, energy and water sectors, announced that all conditions precedent related to the agreement reached last November with Algonquin Power & Utilities Corp. (APUC) for the sale of a stake of 25 % of Atlantica Yield, have been satisfied or waived.

The transaction amounts to 607 MUSD, with the repayment of the debt of approximately 510 MUSD, in accordance with the financing agreements.

Creation of AAGES

As announced and in the context of this operation, Abengoa and APUC signed a strategic agreement whereby both companies will create a joint venture for the international development of energy and water infrastructure assets: Abengoa-Algonquin Global Energy Solutions (“AAGES”).

The creation of AAGES, which now becomes effective, also results in new business opportunities for Abengoa as the company will have exclusive rights to develop both EPC (Engineering, Procurement and Construction) and O&M (Operation and Maintenance) activities of all the projects developed by AAGES, in addition to having a preferential right to perform the EPC all projects developed by APUC.

Likewise, this partnership accelerates the construction and sale of concession assets from Abengoa to Atlantica Yield currently under the existing ROFO (Right of First Offer) agreement between Abengoa and Atlantica Yield, which also represents a key milestone in the Abengoa divestment program.

Gonzalo Urquijo, Abengoa’s Executive Chairman, commented on this operation and stated that “The completion of the agreement reached with Algonquin, in addition to allowing a considerable reduction of our debt and making possible the creation of AAGES, constitutes an outstanding milestone on the road undertaken by Abengoa in the development of its viability plan”.

Abengoa Viability Plan

The sale of the ownership stake in Atlantica Yield is part of Abengoa’s divestment strategy and represents a new step in the viability process the company is currently undergoing. The sale of the stake in Atlantica Yield complements the following recent divestments: a desalination plant in Ghana, the combined cycle Norte III, Bioenergy Europe, Bioenergy USA, Ashalim solarthermal plant in Israel, Qingdao desalination plant in China and the sale of the subsidiary Abentel to Ericsson, amongst others.

About Algonquin Power & Utilities Corp.

APUC is a diversified generation, transmission and distribution utility with $10 billion of total assets in the US and Canada representing more than 1,250 MW of installed capacity. Through its two business groups, APUC provides rate regulated natural gas, water, and electricity generation, transmission, and distribution utility services to over 750,000 customers in the United States, and is committed to being a global leader in the generation of clean energy through its portfolio of long term contracted wind, solar and hydroelectric generating facilities. APUC delivers continuing growth through an expanding pipeline of renewable energy development projects, organic growth within its rate regulated generation, distribution and transmission businesses, and the pursuit of accretive acquisitions. Common shares and preferred shares are traded on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A, and AQN.PR.D. APUC's common shares are also listed on the New York Stock Exchange under the symbol AQN.