Neoen launches EUR-750m capital raising to back capacity goal
- French renewable power manufacturer Neoen SA (EPA: NEOEN) on Tuesday started an offering of preferential subscription rights in a bid to increase some EUR 750 million (USD 794m) to back its new 2030 capacity goal.
The Paris-based firm said the financing round will assist it speed up investments in the building and construction of new wind and solar parks and increase financing for long-duration power storage. Recently, it introduced a goal for 20 GW of capacity in operation or unfinished by 2030 and also upgraded its financial investment goal to EUR 6.2 billion in 2021-2025 from the EUR 5.3 billion previously prepared.
The rights issue will bring the French company around EUR 740 million in net earnings, which will cover the share of equity needed under its 2023-2025 budget.
The subscription cost for the deal is set at EUR 20.45 per share, standing for a discount of 32% to the closing price of the company's supply on March 6. The subscription parity is 8 new shares for 25 existing shares.
The offering will be open through March 22.
Neoen closed 2022 with 6.6 GW of capacity in operation and under construction, consisting of 1.1 GW of storage, as well as is targeting at least 10 GW by 2025. The projects in its secured portfolio at the end of last year amounted to 7.4 GW.
