{"id":5369,"date":"2021-02-08T21:45:47","date_gmt":"2021-02-08T21:45:47","guid":{"rendered":"http:\/\/euromenaenergy.com\/?p=5369"},"modified":"2021-02-08T21:45:47","modified_gmt":"2021-02-08T21:45:47","slug":"green-energy-firms-to-help-power-spanish-ipo-revival-in-2021","status":"publish","type":"post","link":"https:\/\/emimer.com\/?p=5369","title":{"rendered":"Green Energy Firms to Help Power Spanish IPO Revival in 2021"},"content":{"rendered":"<p>Spain\u2019s national stock market, home to a\u00a0solitary\u00a0listing in 2020, is gearing\u00a0<span id=\"190827aa-6713-11eb-b250-000f53570e20\">up to<\/span>\u00a0host a flurry of green energy providers in the coming months.<\/p>\n<p>At least four companies including\u00a0Repsol SA\u00a0are working on possible initial public offerings of renewable assets in Madrid, according to people familiar with the matter. Driving the trend is an increasingly environmentally-conscious investor base and a national government intent on generating power from sustainable sources.<\/p>\n<p>\u201cThe public market is paying more than the private sector for these types of assets now. This is in stark contrast to 18 months ago,\u201d said Inigo Gaytan de Ayala, global head of equity capital markets at\u00a0Banco Santander SA. \u201cTime is of the essence and first-mover advantage is critical. Companies want to move swiftly and make the most of this favorable window.\u201d<\/p>\n<p>Companies that produce renewable energy have raised $336 million via IPOs on European exchanges over the last 12 months, according to data compiled by Bloomberg. By far the\u00a0largest\u00a0listing came from\u00a0Soltec Power Holdings SA, a green power generator and manufacturer of certain devices for solar panels.<\/p>\n<p>Soltec\u2019s was the only IPO on a Spanish exchange in 2020, when the coronavirus crisis kept many companies and investors away from public markets. The deal pipeline is looking decidedly healthier this year, with Capital Energy,\u00a0Opdenergy SA\u00a0and\u00a0Ecoener Emisiones\u00a0all weighing plans to list in the country in the spring, the people said, asking not to be identified discussing confidential information. Two other privately-owned renewables firms are also considering IPOs, one of the people said.<\/p>\n<div id=\"desktop-in-article-1-QNUKSGDWRGG301\" class=\"page-ad\" tabindex=\"-1\" role=\"presentation\" data-position=\"desktop-in-article\">\n<div class=\"desktop-in-article-ad-mock\">Representatives for Capital Energy and Ecoener said the companies were analyzing possible IPOs, though no final decisions have been taken. Spokespeople for Opdenergy and Repsol declined to comment.<\/div>\n<\/div>\n<h3 id=\"political-push\">Political Push<\/h3>\n<p>\u201cThe strong level of activity Spain is currently enjoying in the renewable segment is probably a combination of different factors,\u201d said Angel Arevalo, global head of advisory at\u00a0Banco Bilbao Vizcaya Argentaria SA. Among these, he said, are the country\u2019s large renewable resources, falling generation costs and \u201cstrong local political commitment to alternative energy.\u201d<\/p>\n<aside class=\"inline-newsletter\" data-state=\"ready\"><\/aside>\n<p>Spain\u2019s government has been working to boost renewable power in its generation mix from around 50% today to 70% by 2030, and 100% before 2050. Last month, Spain held its first power auction in four years and\u00a0awarded 3 gigawatts\u00a0of new wind and solar capacity. The country is set to become a recipient of European rescue funds to help rebuild its economy in the wake of the Covid-19 pandemic and a large\u00a0allocation\u00a0of these could go to clean energy projects.<\/p>\n<p>\u201cSpain is structurally a great base for renewable companies, particularly for firms that focus on solar energy given climate,\u201d said Jerome Renard, head of European equity capital markets at\u00a0Bank of America Corp.\u00a0\u201cThe country saw investments in that industry very early on, and therefore benefits from a whole ecosystem of expertise.\u201d<\/p>\n<p>So far in Spain, stock performance from the sector has been stellar.<\/p>\n<p>Shares in Soltec have risen 137% since it went public.\u00a0Grenergy Renovables\u00a0has also more than doubled from when the Spanish power producer moved from the country\u2019s alternative market to main exchange in\u00a0late\u00a02019. BBVA\u2019s Arevalo said renewables in Spain were offering \u201cbetter returns for investors compared to other geographies.\u201d<\/p>\n<h3 id=\"mainstream-asset\">Mainstream Asset<\/h3>\n<p>Investment banks are also preparing to pick up more mandates tied to sustainable energy initiatives. Gonzalo Garcia, co-head of investment banking at\u00a0Goldman Sachs Group Inc.\u00a0in Europe, the Middle East and Africa, said in a\u00a0January\u00a0interview that the shift toward renewables would be one of the key market themes for banks this year.<\/p>\n<p>Capital Energy is working with Goldman Sachs and\u00a0UBS Group AG\u00a0to gauge investor interest ahead of its potential share sale, a person familiar with the matter said. Repsol is working with\u00a0JPMorgan Chase &amp; Co.\u00a0on its renewables IPO plan, people said.<\/p>\n<div id=\"desktop-in-article-2-QNUKSGDWRGG301\" class=\"page-ad\" tabindex=\"-1\" role=\"presentation\" data-position=\"desktop-in-article\">\n<div class=\"desktop-in-article-ad-mock\">Representatives for Goldman Sachs, JPMorgan and UBS declined to comment.<\/div>\n<\/div>\n<p>\u201cIn the past, renewables used to attract specialist investors with a focus on the energy sector,\u201d said Renard at Bank of America. \u201cIt has now become completely mainstream, reaching a much wider base of investors.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Spain\u2019s national stock market, home to a\u00a0solitary\u00a0listing in 2020, is gearing\u00a0up to\u00a0host a flurry of green energy providers in the coming months. At least four companies including\u00a0Repsol SA\u00a0are working on possible initial&#8230;<\/p>\n","protected":false},"author":1,"featured_media":5381,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,9],"tags":[46,48,57,68,76,77,82,86,87,90,96,99,103,107,109,111,113,137,139,146,148,160,174,183,184,201,202,209,222,230,232,233,244,246,249,256,262,263,267,277,279,280,285,288],"class_list":["post-5369","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-clean-energy","category-climate","tag-aramco","tag-athens","tag-baroudi","tag-carbon","tag-climate","tag-climate-change","tag-co2","tag-cyprus","tag-decarbonising","tag-democracy","tag-doha","tag-eastmed","tag-egypt","tag-embargo","tag-emissions","tag-energy","tag-energy-peace","tag-gas","tag-gazprom","tag-greece","tag-greenenergy","tag-international-maritime-disputes","tag-lebanon","tag-maritime-boundaries-east-mediterranean","tag-maritime-disputes","tag-offshore","tag-oil","tag-opec","tag-pollution","tag-poverty-alleviation","tag-putin","tag-qatar","tag-rosneft","tag-roudi","tag-russia","tag-saudi","tag-solar","tag-solar-power","tag-straddling-hydrocarbons-reserves","tag-total","tag-trump","tag-turkey","tag-unclos","tag-usa"],"_links":{"self":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/5369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5369"}],"version-history":[{"count":0,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/5369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/media\/5381"}],"wp:attachment":[{"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}