Atlantica Sustainable Infrastructure plc (NASDAQ:AY) Q3 2023 Earnings Call Transcript

Santiago Seage: Yes, sure. So, I mean, when you look at our balance sheet, and Francisco can elaborate later if needed, at this point in time, from a ratio, leverage ratio point of view, we have some room, including as you said the RCF and other sources of corporate debt is required. From an asset recycling point of view, we are talking today about one potential transaction, and we will be active on that front. And if we find, as Mark’s question before was suggesting, if we find opportunities that we believe create value, that would be another potential source. And additionally, at this point in time, as we mentioned before as well, when we start a project, we do it when we have put together all the elements, including contracts, and that allows to be able to obtain non-recourse financing in many situations.

William Grippin: Got it. And just the quick last one here. Sorry, go ahead.

Santiago Seage: I was going to mention that obviously another source is the fact that we generate more cash than what we pay out to shareholders. That’s another obvious source of capital.

William Grippin: Right. And just last one here, could you just provide, I guess, an update on what you’re seeing here as far as anticipated CAFD yields on your corporate capital investments for your development projects versus what you’re seeing in the market for third-party acquisitions?

Santiago Seage: So, that’s a very good question, and typically what we have seen and we continue seeing today is that by developing and building our own projects, we can achieve a higher return, both in terms of IRR and shorter term yield as well. Nevertheless, in the current market, we believe that there are going to be opportunities on the acquisition side, and there are going to be players that will need to divest either assets in operation or even assets under development. And therefore, we are open to checking whether my answer continues being true all the time, or whether there are opportunities where allocating capital to acquisitions can achieve similar returns at a lower risk.

William Grippin: Got it. Appreciate the time today. Thank you.

Operator: We have no further questions in the queue, so I’ll turn the call back over to Mr. Santiago Seage for any closing remarks.

Santiago Seage: Thank you very much for attending our call. We have finished, Operator.

Operator: This concludes today’s call. Thank you. Joining. You may now disconnect your line.