French renewables outfit will use proceeds to invest in new projects as part of its €5.3bn investment goal to 2025

French renewables outfit Neoen has launched a €600m share rights issue to help finance the company’s over €5bn investment plan that aims to have 10GW in operation or under construction by 2025.

The net proceeds from the issuance of the new shares will be used for the funding of its future assets as part of a first investment cycle due to last at least until end of 2022.

Neoen said it is issuing 21,393,678 new shares at a price of €28 a share.

The subscription period for the new shares will be open from 19 March until the close of trading on 31 March.

The issue, settlement-delivery and admission of the shares to trading on the regulated market of Euronext Paris are expected to take place on 9 April.

Historic shareholders of Neoen, Impala and Bpifrance, have committed to exercise at least two-thirds of their preferential subscription rights, while the FSP, the company’s second largest shareholder, has committed to exercise at least 85% of its right.

Neoen chairman and chief executive Xavier Barbaro said: “A few days after unveiling our ambitions for the coming years, we are announcing today the launch of a capital increase of circa €600m, which is the first milestone of the financing of our 2021-2025 investment plan.

“We are pleased to offer all of our current shareholders the opportunity to take part in this transaction, and we are proud to see our main shareholders, first and foremost Impala, once again investing with conviction in our company: it underscores their confidence in the value creation potential of Neoen.

“We have had a strong public markets track-record since the 2018 IPO.

We are delighted to write this new page in our history as a pure player in renewable energy, a story of robust operational growth, strong financial discipline, innovation capacity and CSR excellence.”

Source: Renews.biz