EDP and EDPR are planning to raise over €1bn in capital through a new share offering as part of a €19bn Capex plan to deploy about 20GW of renewables by 2025.
Citigroup Global Markets Europe and Morgan Stanley Europe have been mandated by EDPR to launch an offering of EDPR shares via an accelerated bookbuild targeting gross proceeds of about €1.5bn.
The shares will be offered for purchase exclusively by qualified and institutional investors.
They will commence immediately after the notification, the company said.
Following the completion of the bookbuild, EDPR will determine and announce the issue price and the final gross proceeds.
To facilitate the pricing and settlement of the bookbuild, EDP will lend EDPR shares to the banks and the banks will place such shares with qualified and institutional investors.
Immediately following completion of the bookbuild, and subject to approval by EDPR’s board of directors, EDPR will propose a capital increase equal to the gross proceeds to be fully subscribed by the banks.
Authorisation would be sought through a proposed resolution in the general shareholders meeting of EDPR to be held on or around 12 April 2021, the company said.
It added that subject to the above resolution being duly approved by shareholders in the meeting, the banks would fully subscribe the capital increase at EDPR and return such shares to EDP.
In the event that the capital increase is not executed, the share lending arrangement between EDP and the Banks would be settled with the proceeds of the bookbuild, EDP said.