EDP Renewables plans to raise some €1.5bn ($1.8bn) in a capital increase to finance part of its new strategic plan that includes massive spending in order to double its renewables capacity to 40GW in five years.

To swiftly implement the capital increase, the utility has mandated Citigroup and Morgan Stanley to launch an offshoring of shares via accelerated book-building (ABB) exclusively to qualified and institutional investors.

EDPR’s parent Energías de Portugal (EDP) last week had presented a €24bn strategy to speed up its energy transition, including a €19bn capital expenditures plan to deploy another 20GW in renewables by 2025, and bring the company’s overall green power capacity to 70GW by 2030.

EDPR shares fell 8% to €17.22 in early trading in Lisbon today in reaction to the capital increase.

The book-building will start immediately, and EDPR after its completion will announce the issue price and final gross proceeds.

Investors are expected to receive their allocated shares on or around March 5, 2021.

Both EDP and EDPR will be subject to a lock-up of 180 days from delivery of the new shares under the Capital Increase, subject to market standard exemptions.

Wind

EDPR to raise $1.8bn to help finance massive renewables push