RWE announces capital increase to accelerate and expand renewables growth

RWE has successfully concluded an increase of its share capital of around €2 billion by selling new shares at a price of €32.55 per share following an accelerated bookbuilt offering to institutional investors. The company’s share capital was increased by 10% by using part of the authorised capital by issuing about 61.5 million new ordinary bearer shares against cash contributions and with the exclusion of subscription rights.

The transaction reflects RWE’s strategy to expand in the fields of renewable energy and to even grow beyond previous expansion plans. This provided RWE with full financial flexibility to finance future growth: The net proceeds from the capital increase are planned to be invested in additional short-term capacity build-out, enhancements of pipeline and in further visible mid- and long-term growth opportunities in renewables on top of the company’s ambition to grow its renewables portfolio to more than 13 gigawatts (GW) net and to invest some €5 billion net by the end of 2022. Parts of the proceeds will be used to finance the planned acquisition and realisation of the 2.7 GW project pipeline from Nordex as announced on 31 July 2020.

The new shares were offered for purchase exclusively to institutional investors in a private placement by way of an accelerated book building process. They are entitled to the dividend for fiscal year 2020.

“We are very pleased how well our offer was accepted and how our growth ambition in renewable energy is being supported by our investors. The additional financial flexibility enables us to enhance our project pipeline and to accelerate our continued growth in wind and solar power. At the same time, we underline RWE’s position as one of the global leading companies in renewable energy.”  Rolf Martin Schmitz, CEO of RWE AG

Markus Krebber, CFO of RWE AG: “The current market environment allowed for a successful equity raising at attractive valuation levels for our shareholders. RWE, having already a solid financial basis, stands for promising growth perspectives in our renewables business with attractive returns and a reliable dividend target: We stick to our plan to increase our dividend for fiscal 2020 to €0.85 per share and to continuously grow dividend payments in line with the development of earnings in our core business.” 

Admission of the new shares for trading in the sub-segment of the regulated market with additional post-admission obligations (Prime Standard) of the Frankfurt Stock Exchange and in the regulated market of the Duesseldorf Stock Exchange is expected to take place without a prospectus on 20 August 2020. Trading is expected to commence on 21 August 2020. It is intended to include the new shares in the existing listings of the company’s shares. The delivery of the new shares to investors is scheduled for 24 August 2020.