* Unit plans to raise up to $600 mln
* Intends to list on the Nasdaq under symbol "ABY"
April 1 (Reuters) - Spanish renewable energy and engineering firm Abengoa SA made public its U.S. subsidiary's plans to raise up to $600 million in an initial public offering of ordinary shares.
Abengoa in March filed confidentially with the U.S regulators for the proposed IPO of its yieldco vehicle.
Abengoa Yield Plc, the U.S. subsidiary, intends to list its shares on the Nasdaq under the symbol "ABY," the company said on Tuesday. (http://r.reuters.com/vuj28v)
Yield cos usually own and operate some solar assets of their parent companies and have long-term purchase agreements with power utilities, a guarantee of stable cash flow.
Most of this cash will be paid out as dividends, with the remainder reinvested in new plants, a valuable source of funding for parent companies who will retain a sizeable stake in the new entities.
Abengoa Yield expects a payout ratio of 90 percent of its cash available for distribution. The company intends to pay a regular dividend from the third quarter of 2014.
Solar company SunEdison Inc is also preparing to spin off its unit, SunEdison Yield Co, into a new publicly listed company sometime in the second quarter.
Citigroup and BofA Merrill Lynch were underwriting the IPO, Abengoa Yield told the U.S Securities and Exchange Commission in a preliminary prospectus.
The filing did not reveal how many shares the company planned to sell or their expected price.
Abengoa said in October it hoped to raise about 450 million euros ($620 million) in a U.S. share offer.
The company plans to use Abengoa Yield to own, manage and acquire renewable energy assets in the United States and South America.
Abengoa generates 30 percent of its revenues in the United States, compared to 18 percent from its home market of Spain.
Net proceeds from the offering would be distributed to the parent company as part of the consideration paid in connection with the asset transfer, Abengoa Yield said.
The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different. ($1 = 0.7249 Euros)
(Reporting by Avik Das in Bangalore; Editing by Sriraj Kalluvila)