Rabbalshede Kraft to raise EUR 45m in preferential rights issue

Jun 20, 2013 - Swedish wind farm developer and operator Rabbalshede Kraft AB is to raise SEK 386.4 million (USD 59.6m/EUR 45m) in a preferential rights issue to help build 101 MW of wind farms in Sweden.

The company said yesterday that its board had approved the issue of up to 32.2 million series B shares at SEK 12 apiece. Earlier this month, Rabbalshede Kraft raised SEK 171.6 million through a private placement to Manor Investment SA, a Luxembourg-based private industrial company. Both fundraisings are designed to fund the equity requirement for the construction of the Arjang NV, Arjang SV and Skaverod/Guserod wind farms. The three projects will require a total investment of SEK 1.176 billion, of which one-third will be shareholders' equity.

Rabbalshede Kraft said construction of the wind farms would start next month and was due to be completed by late 2014. The three facilities will consists of total of 33 turbines to be provided by Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS). They are expected to produce 289 GWh per year, boosting Rabbalshede Kraft's production by over 100%.

According to the announcement, Manor is to subscribe for at least SEK 214.8 million of shares as part of the preferential rights issue. The offer will be open for subscription between June 24 and July 8. It represents 41.5% of Rabbalshede Kraft's capital and 37.2% of the votes.

(SEK 1.0 = USD 0.154/EUR 0.116)

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