The operation will be carried out with institutional investors, and there is still no date for the capital increase. The proceeds will be used to finance the company's CAPEX.
EDP Renováveis (EDPR) will be a vehicle for the group to fund investments in the coming years. CEO Miguel Stilwell d’Andrade announced this Thursday that the company is considering a 1.5 million euros capital increase. At the same time, it will maintain its strategy of asset rotation (but reduced).
“EDP Renewables is a potential investment vehicle,” explained Stilwell d’Andrade at the presentation of the 2021-2025 strategic plan. Partially to finance the CAPEX plan, “EDPR is considering the issuance of equity of 1.5 billion euros to be placed with institutional investors at an appropriate time.”
Despite considering that “any equity issuance would be expected to meaningfully increase the free float and liquidity of EDPR shares,” the company will not relinquish control of the subsidiary, with a minimum of 70% of the capital (compared to the current 83%).
The proceeds from the capital increase will be used to finance EDPR’s investment plan of 19 billion euros to install around 20 gigawatts (GW) of renewables between 2021 and 2025. This target is part of a group investment plan of 24 billion euros in the energy transition.