Our Growth Opportunities
Atlantica Yield intends to grow our cash available for distribution by optimizing the operations of our existing assets and acquiring new contracted revenue-generating assets in operation.
We intend to take advantage of favorable trends in the power generation, electric transmission, and water sectors globally, including energy scarcity and a focus on the reduction of carbon emissions. To that end, we believe that our cash flow profile, coupled with our scale, diversity and low-cost business model, offers us a low risk profile and provides us with a significant competitive advantage with which to execute our growth strategy.
We are focused on high-quality, newly-constructed and long-life facilities with creditworthy counterparties that we expect will produce stable, long-term cash flows. We will seek to grow our cash available for distribution and our dividend to shareholders through organic growth and by acquiring new contracted assets in operation from AAGES, Algonquin, Abengoa, third parties and potential new future partners.
We have an exclusive ROFO agreement with AAGES. AAGES is the joint venture formed by Algonquin and Abengoa to develop and invest renewable energy and water assets. The AAGES ROFO Agreement provides us with a right of first offer on any proposed sale, transfer or other disposition of AAGES’ contracted assets.
Our industrial sponsor, Algonquin Power & Utilities Corp., “Algonquin”, who has a solid industry expertise and investment grade capital structure, is willing to lead future accretive capital increases, which provides us with further visibility on financing our growth.
In addition, we have in place an exclusive agreement with Abengoa which provides us with a right of first offer on any proposed sale, transfer or other disposition of any of Abengoa’s contracted renewable energy, efficient natural gas power, electric transmission or water assets in operation and located in North America, South America, Europe and certain assets in other regions.
Additionally, we plan to sign similar agreements or enter into partnerships with other developers or asset owners to acquire assets in operation. We may also invest directly or through investment vehicles with partners in assets under development or construction, ensuring that such investments are always a small part of our total investments. Finally, we also expect to acquire assets from third parties leveraging the local presence and network we have in the geographies and sectors in which we operate.
With this business model, our objective is to pay a consistent and growing cash dividend to shareholders that is sustainable on a long-term basis. We expect to distribute a significant percentage of our cash available for distribution as cash dividends and we will seek to increase such cash dividends over time through organic growth and as we acquire assets with characteristics similar to those in our current portfolio.