UPDATE 1-Spain's Iberdrola meets asset disposals target

miércoles 12 de febrero de 2014 07:06 GYT
 

* Sells further stakes in Portugal and Brazil

* Meets 2 billion euro asset disposal target

* Due to present 2014-2016 strategic plan on Feb. 19 (Recasts with asset disposal target)

MADRID, Feb 12 (Reuters) - Spanish power firm Iberdrola has announced two further disposals, allowing it to meet a target to sell 2 billion euros ($2.7 billion) of assets by the end of this year.

The company said on Wednesday it had sold 1.98 percent of Portuguese utility EDP for 210 million euros and a 22.6 percent stake in Brazil's Itapebi Geracao de Energia for about 99 million.

Following more than a dozen disposals in the past two years, these last two sales put Iberdrola on track to reduce debt to below 26 billion euros by the end of this year.

It had 28.6 billion euros of debt in September 2013.

Iberdrola, which is the world's largest wind farm operator and also owns Britain's Scottish Power, announced a plan to sell non-strategic assets in 2012, under pressure to maintain an investment-grade credit rating at a time when Spain's sovereign debt crisis was putting corporate debt under scrutiny.

While the sovereign crisis has since subsided, Iberdrola warned in October that the costs of regulatory changes in Spain were hurting its earnings and straining its dividend payouts.   Continuación...