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05.29.2002

Abengoa granted a €500 million loan to finance growth

There is a two-fold objective to the twenty-six year loan. Firstly, integral amortization of the previous €340 million syndicated loan formalized by the company in July last year, for which Citibank International also acted as the broker company. And secondly, to ensure long term availability of stable funds, by putting Abengoa’s financial resources in line with its actual strategic objectives. The investments foreseen by the Andalusia industrial group focus especially on bioethanol – critical alcohol of vegetable origin utilized in green gasoline production – and environmental activities.

The interest rate on the new loan is variable and depends on the Euribor plus a differential. With the cancellation of the previous credit – which served to acquire Befesa – the pledging of shares of the Abengoa environmental subsidiary, given by the company as assurance for the same, shall be suppressed.

At the close of the last financial year, Abengoa’s financial debt was €494.99 million. This indebtedness on total liabilities was reduced 23.56%. The company’s shareholders’ funds, set at €316 million, cover 63.8% of the financial debt. Indebtedness increased only 4.4% last year and 77% corresponds to long-term credits.

Abengoa closed the 1Q of this year with net earnings of €11.8 million, a 13% increase, and billing of €408.3 million, up 18% on the 2001 figure.