Aker Horizons raises USD 117m to scale up green power projects

Aker Horizons ASA (OSE:AKH), the renewables platform controlled by Norway’s Aker ASA (OSE:AKER), has raised NOK 1 billion (USD 116.7m/EUR 100.9m) to strengthen its balance sheet ahead of further investments in wind and solar subsidiary Mainstream Renewable Power Ltd and new green value chains projects.

Aker said after close of trading on Friday that under the completed private placement, it is issuing roughly 29 million new shares at a price of NOK 34.50 apiece. The price did not represent a meaningful discount to the company's close on the day, bourse data shows.

Scotland-based asset manager Baillie Gifford subscribed for 13.5 million shares in the offering, equal to a stake of 4.6% in the Norwegian renewables business. Last month, Baillie Gifford also nearly doubled its stake in Aker Horizons' portfolio company Aker Carbon Capture to 12.59%.

Aker Horizons said it will use the proceeds to boost investment in existing portfolio companies. In May, the Norwegian company closed the purchase of a 75% stake in Mainstream Renewable Power. The latter is currently building 1.4-GW wind and solar assets in Chile and over the summer launched the 1-GW Chilean renewable energy platform Nazca. In late October, a consortium led by Mainstream became the preferred bidder for 12 South African wind and solar projects with 1.27 GW of total capacity.

Last Tuesday, Aker Horizons announced two investments for NOK-290-million to develop green value chains for power-intensive industries in Narvik, northern Norway.

(NOK 10 = USD 1.166/EUR 1.009)

(EUR 1 = USD 1.157)

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