MADRID (TheStreet) -- Spain's revived energy sector is attracting big international funds, so individual investors might want to take a look as well. The country's energy industry has been transformed during the past two years by the Spanish government's decision to reduce regulation and costs.
"The government succeeded in removing the deficit and converted the energy sector in one of the best performing of Spanish economy," says Alvaro Navarro, analyst at the consultant Intermoney. "Dividend yield of energy companies reached 4% in 2014, a much higher value than Spanish 10-year bond interest rate, currently at 1.7%."
This rebound clearly has been noticed by big international investors. Last year, European, Chinese, Saudi, Kuwaiti and especially U.S. funds poured $5.5 billion into Spanish energy companies. Not surprisingly, they took into special account renewable energy projects, that according to Navarro represent around 30% of the whole energy sector.
Last October, Kohlberg Kravis Roberts (KKR) acquired one-third of renewable energy assets of Spanish energy giant Acciona (ACXIF) for $441.6 million. In June 2011, the U.S. fund teamed up with German insurance company Munich RE to buy 49% of solar energy producer T-Solar.
And early this year, U. S. Global Infrastructure Investors spent $333.5 million to buy 24.4% of Saeta, the renewable energy division of building company ACS, with the aim of turning it into a publicly traded company. Last August, it also raised its stake in privately held Compania Logistica de Hidrocarburos up to 15%.