MADRID (Reuters) -Spanish energy company Cox plans to invest 5.5 billion euros ($6.4 billion) in water and renewable energy through 2028, almost half of which will be made in Mexico, it said on Thursday.
The strategy update comes after the company agreed to buy Iberdrola’s assets in Mexico in a deal in July valuing the business at $4.2 billion including debt, a transaction CEO Nacho Moreno deemed “transformational.”
Up to 80% of the acquisition will be funded with debt and the rest with equity, Moreno said on Thursday.
Cox will provide roughly 60% of the equity, while international investors will inject the rest in exchange for preferred securities.
“We already have two partners engaged and are in additional conversation with three others,” he said.
The investment plan through 2028 will be supported by the sale of some assets, the company told investors and analysts.
Moreno said in August that the company planned more than $10 billion in water and renewable investments in Mexico by 2030, a figure which included the $4.2 billion acquisition of assets in Mexico.
Cox sees 2028 revenue and earnings before interest, taxes, depreciation, and amortisation more than doubling from levels expected for this year, reaching up to 6.5 billion euros and 1.6 billion euros, respectively.
($1 = 0.8581 euros)
(Reporting by Pietro Lombardi; Editing by Emelia Sithole-Matarise)
