EDP Renováveis, the renewables arm of the Portuguese electrical power giant EDP, is to press ahead with a capital call to finance its expansion over the next few years.
In a communiqué sent to the Portuguese securities market regulator CMVM, the company headed by Miguel Stilwell, announced that it intended to raise €1.5Bn from institutional investors and has already contacted banks to carry out the operation.
A few days after having revealed that a capital call from institutional investors of between €1.5B and €2Bn was being considered, the CEO of EDP Renováveis announced that taking into consideration the statements in the company’s Strategic Update, this was considered the “appropriate moment” for this operation.
The capital call amount is within the lower bracket foreseen by Stilwell. To partially finance his €24Bn investment plan to transition the company from coal powered stations to greener biofuels, wind and solar energy, with EDP Renováveis having an investment plan of around €19Bn to implement around 20 GW of renewables by 2025, the company “is planning a capital call of around €1.5Bn” states the communiqué sent to the market regulator.
To speed up the process, “Citigroup Global Markets Europe AG and Morgan Stanley Europe SE have been mandated to launch an accelerated book-building of EDP Renováveis shares with the goal of raising a gross amount of around €1.5Bn.”
This operation, which will begin immediately, is aimed solely at professional investors.