(Adds details on which banks’ exposure)
MADRID, Sept 29 (Reuters) - Spanish and international banks’ total exposure to indebted renewable energy company Abengoa stands at around 20.2 billion euros ($22.72 billion), including financing for projects, a source familiar with the matter said on Tuesday.
Just over half of that exposure is linked to project financing, according to the source, who has knowledge of Abengoa’s financing arrangements.
Another 7.6 billion-euro chunk is connected to working capital, which includes financing to pay suppliers and other needs at the Seville-based group.
Abengoa, which plans to carry out a rights issue to cut debt, had 9.8 billion euros of gross consolidated debt, including bonds, at the end of June.
The company, which also specialises in engineering and has biofuel and solar-heated power plants in the United States, has been under scrutiny over its debt levels for several months.
It won backing from its major creditors last week for most of its planned 650-million-euro share sale, a big part of its efforts to cut debt levels. It will also sell assets and scrap dividends.
A spokesman for Abengoa declined to comment on the company’s total bank exposure, first reported by Spanish news website El Confidencial.
The spokesman said in an emailed statement that under accounting rules, it did not classify as debt some elements such as guarantees and non-recourse debt, or debt that is not guaranteed by the parent company.
Abengoa had recently told analysts on a conference call it had 2.2 billion euros worth of financing linked to paying suppliers, which it was not legally required to reflect as debt on its balance sheet.
Spain’s Santander, one of the banks underwriting Abengoa’s cash call, has the biggest overall exposure to the renewable energy company at 1.56 billion euros, according to the source. Most of that is working capital.
Santander declined to comment.
Other Spanish banks with sizeable exposures, but at just under 600 million euros, are Spain’s Caixabank and Bankia, the source said. The two banks declined to comment.($1 = 0.8892 euros) (Reporting by Jesus Aguado and Jose Elias Rodriguez, Writing by Sarah White, Editing by Carlos Ruano and Jane Merriman)
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