Avangrid Reinforcing Its U.S. Offshore Wind Budget

Avangrid, the U.S. arm of the Spanish renewable energy giant Iberdrola, has announced the pricing of 3.150% of its notes in aggregate principal amount of USD 600 million, and will use the net proceeds of the offering to finance and/or refinance its renewable energy projects in the U.S., including offshore wind farms.

The notes, due 1 December 2024, will be direct unsecured and unsubordinated obligations of Avangrid, with the offering expected to close on 21 November 2017, subject to the satisfaction of customary closing conditions.

The net proceeds will support Avangrid’s investment in the construction and development of onshore and offshore wind farms, solar power plants, transmission and distribution networks projects that connect renewable energy sources or reducing greenhouse gas emissions.

Specifically, the company said it expects to reimburse its expenditures made to construct an operational 208MW wind farm in North Carolina and to purchase a 56MW solar farm in Oregon. To the extent the net proceeds exceed the expenditures on these projects, the remaining net proceeds will be used to finance and/or refinance additional renewable energy projects selected by Avangrid’s green financing committee, the company said.

BBVA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., and Wells Fargo Securities, LLC are acting as joint book-running managers of the offering. BBVA Securities Inc. is the Green Structuring Agent.

In March 2017, Avangrid Renewables won the lease for the Kitty Hawk area off North Carolina by placing a winning bid of USD 9,066,650 at a competitive lease sale. The U.S. Bureau of Ocean Energy Management (BOEM) put Avangrid’s offshore wind lease into effect in October.

Avangrid Renewables has also acquired a 50% stake in the Vineyard Wind project offshore Massachusetts from Copenhagen Infrastructure Partners (CIP).

Photo: Illustration; Image source: Iberdrola