Germany's RWE accomplishes $2.4 billion share issue to support its renewable energy expansion

The restructuring positions RWE as Europe's third-largest renewables player as Germany phases out nuclear power and coal in pursuit of a safe and environmentally sustainable energy mix

August 19, 2020. By News Bureau

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German utility RWE has announced that it has concluded a $2.4 billion share issue to back its expansion into renewable energy, comprising its $480 million purchase of wind turbine maker Nordex's project development pipeline.

The move surges RWE's share capital by 10 percent and was effectively placed with institutional investors via an accelerated book building process, RWE said in a declaration issued after the Frankfurt market close.

"We are very pleased how well our offer was accepted and how our growth ambition in renewable energy is being supported by our investors," Chief Executive Rolf Martin Schmitz said in a statement.

"The additional financial flexibility enables us to enhance our project pipeline and to accelerate our continued growth in wind and solar power."

Part of the proceeds will be used to buy 2.7 gigawatts (GW) worth of European wind and solar projects from turbine maker Nordex in a deal made public at the end of July.

RWE, Germany's biggest utility, wants to surge its renewables portfolio to more than 13 billion GW and capitalize a total of 5 billion euros by the end of 2022.

The Nordex transaction was the first major renewables deal since RWE took over the wind and solar activities of former subsidiary Innogy and German peer E.ON.

The restructuring positions RWE as Europe's third-largest renewables player as Germany phases out nuclear power and coal in pursuit of a safe and environmentally sustainable energy mix.

Chief Financial Officer Markus Krebber confirmed plans to pay a dividend of 0.85 euro per share for 2020.

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