French renewable energy developer, Neoen has launched a Euro 600 million share rights issue to help finance the company’s Euro 5 billion investment plan. The company aims to build a renewable energy portfolio of 10GW in operation or under construction by 2025. The net proceeds from the issuance of the new shares will go into financing its new assets as part of a first investment cycle which will end by 2022. Further, Neoen announced that it is issuing 21,393,678 new shares at a price of Euro 28 a share. The subscription period for the issue will be open from March 19, 2021, and close on March 31, 2021. The issue, settlement-delivery, and admission of the shares to trading on the regulated market of Euronext Paris are expected to be finalised by April 9, 2021.
Historic shareholders of Neoen, Impala and Bpifrance, have committed to exercising 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 per cent of its right.
Neoen requires an additional capital of about Euro 1.2 billion over the 2021-25 period to meet its renewable energy. Neoen forecasts earnings before tax, depreciation, and amortisation (EBITDA) of between Euro 295 million and Euro 325 million in 2021 and is targeting an increase in its EBITDA of more than 20 per cent in 2022 and looks towards securing double-digit annual growth over 2023-25.