Spain-based Abengoa has signed a non-binding agreement with the US infrastructure investor EIG Global Energy Partners to jointly manage and fund its renewable energy projects.

Under the terms of the agreement, the two companies will jointly invest in New Company (Newco) that will develop a portfolio of already contracted Abengoa projects in countries including the US, Brazil, Chile and Mexico.

EIG will hold a majority stake in the Newco while Abengoa will retain a minority stake.

The projects, which need over $9.5bn in financing, include conventional generation and renewable energy assets and transmission lines in different geographies, including the US, Mexico, Brazil and Chile.

The Newco will also sign the existing right of first offer (ROFO) agreement between Abengoa and Abengoa Yield.

The transaction is in the due diligence phase and the binding agreement is planned by the end of January 2015.