Abengoa Yield, a solar and electricity transmission yieldco spun out of Spanish energy company Abengoa, announced terms for its IPO on Monday.

Abengoa (MCE: ABG.B/P SM /NASDAQ: ABGB), announced today that its wholly-owned subsidiary, Abengoa Yield plc (“Abengoa Yield”) (NASDAQ: ABY) intends to commence an initial public offering of its ordinary shares for expected gross proceeds of approximately USD 600 million, prior to underwriting commissions and discounts and other offering expenses (the “Offering”). The underwriters of the Offering will have a 30-day option to purchase up to an additional 15 % of thatamount from Abengoa, to cover overallotments, if any.

Abengoa Yield is a dividend growth-oriented company formed to serve as the primary vehicle through which Abengoa will own, manage and acquire renewable energy, conventional power and electric transmission lines and other contracted revenue-generating assets, initially focused on North America (the United States and Mexico) and South America (Peru, Chile, Uruguay and Brazil), aswell as Europe (Spain).

Application has been made for listing of the ordinary shares of Abengoa Yield on the NASDAQ Global Select Market, under the symbol “ABY.”

Abengoa Yield intends to distribute all of the net proceeds of the Offering, less USD 30 million to strengthen its liquidity position, to Abengoa as part of the consideration payable to Abengoa for the transfer of assets to Abengoa Yield.

Citigroup and BofA Merrill Lynch are acting as global coordinators of the Offering. Canaccord Genuity, HSBC, RBC Capital Markets and Banco Santander are acting as joint bookrunners.

The Offering will be made only by means of a prospectus. A copy of the preliminary prospectus, when available, may be obtained as indicated in the next paragraph.