Neoen launches EUR-750m capital raise to back capacity goal

French renewable power producer Neoen SA (EPA:NEOEN) on Tuesday kicked off an offering of preferential subscription rights in a bid to raise some EUR 750 million (USD 794m) to back its new 2030 capacity goal.

The Paris-based company said the funding round will help it speed up investments in the construction of new wind and solar parks and boost funding for long-duration energy storage. Last week, it unveiled an objective for 20 GW of capacity in operation or under construction by 2030 and upgraded its investment goal to EUR 6.2 billion in 2021-2025 from the EUR 5.3 billion previously planned.

The rights issue will bring the French company around EUR 740 million in net proceeds, which will cover the share of equity needed under its 2023-2025 spending plan.

The subscription price for the deal is set at EUR 20.45 per share, representing a discount of 32% to the closing price of the company’s stock on March 6. The subscription parity is eight 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, including 1.1 GW of storage, and is targeting at least 10 GW by 2025. The projects in its secured portfolio at the end of last year totalled 7.4 GW.

(EUR 1.0 = USD 1.059)

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