Iberdrola lists 20% of renewables division to raise cash

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Hot on the heels of finalising its takeover of Britain's ScottishPower, Spanish utility Iberdrola, now the world's unrivalled top wind operator with 6210 MW online, has announced it will float 20% of its renewables division, Iberdrola Energías Renovables (Iberenova) on the Spanish stock exchange. The Initial Public Offer (IPO) is planned for the last quarter of 2007, prior to which the group's entire renewables activities will be consolidated in Iberenova. Iberdrola's share priced hiked slightly to an all time high of EUR 41.8 following the announcement, which was widely applauded by investors and analysts. Iberdrola says it has 38 GW of potential renewables development in its portfolio, the bulk from wind. Money raised from the IPO will allow Iberenova to realise those projects while not raising debt in the rest of the Iberdrola group and increasing visibility of its renewables activities on international markets. Iberdrola says over half the portfolio is in the US wind market. Spain accounts for 6 GW. Another 6 GW is in the UK, while 5.4 GW is in the rest of Europe, 400 MW in Latin America and 500 MW in the rest of the world. Iberenova will also raise its capital before flotation. Analysts at banks Citigroup, BBVA, Chevreux, Dresdner and Goldman Sachs estimate Iberenova's current enterprise value at EUR 17-21 billion.

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