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

EIG will take a majority stake in the portfolio of projects, which need over $9.5bn in financing. Abengoa will retain a minority stake.

Abengoa said the Newco will sign an existing right of first offer agreement between Abengoa and Abengoa Yield, reinforcing the growth opportunities for Abengoa Yield while enabling the Newco to reinvest in new projects contracted by it in the future.

The transaction is in the due diligence phase with a binding agreement expected by the end of January 2015.

Abengoa and EIG have worked together since 2007 when they co-invested in the development of an ethanol plant in France.

EIG is a specialist investor in energy and energy-related infrastructure with about $15bn under management.

Abengoa applies technology solutions for sustainability in the energy and environment sectors, generating electricity from renewable resources, converting biomass into biofuels and producing drinking water from sea water.