Mark Jarvi: That would be the credit facility or corporate debt?
A – Santiago Seage : Well, I mean, it would be the combination of both where we’re running parallel track of putting project finance at the same time.
Mark Jarvi: Understood. And then last quarter, you talked about equity commitments of $175 million to over $200 million. Of the announced projects today, were any of those contemplated in that projection? And then I guess, where are you staying right now in terms of expected equity deployment now?
Santiago Seage : So one, the project in California, we announced today, investment is mostly going to happen in ‘25, ‘26, but it was taken into account in the numbers we shared with you. So in general, I would say that there’s no big change there, regarding the numbers we shared with you a quarter ago, except for the UK projects. But in general, when we share projections with you, we try to take into account things that we believe are going to happen with a certain probability. So I would not expect a very significant change versus that.
Mark Jarvi: Okay. And then Santiago, you made the comment about having to turn over a lot of stones or kick a lot of stones to find good acquisitions out there. How would you frame the return opportunity on acquisitions versus development projects? And then maybe on the development side, for your project returns, are they holding or do you feel like there’s some pressure going to come if interest rates start to turn lower?
Santiago Seage : Yeah, in general returns when you develop are higher, or in other words, you need to look at many, many opportunities on the M&A side to end up having returns comparable to development. That’s why I made that comment before at this point in time. The returns we see on the development side continue being similar to what we have been seeing in the last few quarters. I would say that probably a year, a year and a half ago returns improved in the market and more or less they have been holding there. I think that it will depend a lot on interest rates, whether we maintain these returns, we increase further or we see a bit of pressure, but for the last few quarters what we have seen, I would say is a rational market with reasonable returns.
Mark Jarvi: And then your comment about having a hard time defining good, accretive acquisitions. Is that just at the size that you are looking at or do you think that goes across the range of small, medium and large deals right now?
Santiago Seage : We don’t spend too much time on large transactions. So I wouldn’t be very useful in that part of the market. In the lower to mid-sized part of the market, it takes time. Again, for the last few quarters, we have been able to see interesting opportunities. Specifically the multiples we saw in the UK. That’s not that easy to find.
Mark Jarvi: Okay. Thanks for the time today.
Santiago Seage : Thank you.
Operator: Thank you. [Operator Instructions] And our next question goes to Dimple Gosai of Bank of America. Dimple, please go ahead. Your line is open.
Dimple Gosai : Hi. Thanks for taking the question guys. A very quick one from me. Can you talk a little bit about the Spain market, what you are seeing in terms of market prices, outlook, regulatory front. And then also on full-year guidance, are you comfortable with that? Do you reiterate guidance and is everything intact today?
Francisco Martinez-Davis: Yeah. So starting with your second part of the question, our practice is to talk about guidance when we want, need to change it, and so we are not saying anything because our practice is only to talk about it when we need to make some change. The first part of the question, the market in Spain, we talked briefly in our disclosure, for example, about a PV project in Spain where the project is advanced and we expect to invest in that project in the coming quarters. So we see at this point in time a market where pricing dynamics are, I would say, not as good as they were a couple of years ago, but we continue finding opportunities here and there, being very careful, and like always, working with PPAs. So Spain is a market maybe closer to California, where you have a lot of PV installed.
That means that, as we say in the sector, you have a very steep dark curve around the midday. Power prices are very low there, and therefore from our point of view, we are going to be using PPAs and we are going to be using, in many cases, storage to try to leverage those opportunities, as we do in California or as we do in northern Chile, which again is a similar market with high PV penetration. So I don’t see Spain as a huge growth opportunity, but we do expect to capture some opportunities going forward, especially when the storage market develops a bit more. From that point of view, Spain is a bit behind California, but many of the dynamics that we are seeing in California now, we believe we will see them in southern Europe in the future.
Dimple Gosai : Thank you.
Francisco Martinez-Davis: Thank you.
Operator: Thank you. We have no further questions. I’ll now hand back to Santiago for any closing comments.
Santiago Seage : Great. Thank you very much, everybody, for attending.
Francisco Martinez-Davis : Thank you. Good morning.
Operator: Thank you. This now concludes today’s call. Thank you all for joining. You may now disconnect your lines.
