June 25 (Renewables Now) - French renewable power producer Voltalia SA (EPA:VLTSA) on Monday launched a capital hike in an effort to raise EUR 376 million (USD 428m) gross so it could boost power generating capacity.
About 75.3% of the total amount, or EUR 283 million, is reserved for Voltalia’s controlling shareholder Creadev, Proparco and the European Bank for Reconstruction and Development (EBRD). The latter is a new backer that pledged to invest nearly EUR 25 million.
The subscription period as part of the capital increase will run from June 27 to July 8. The trading period for preferential subscription rights starts on June 25 and ends on July 4. The subscription unit price is set at EUR 9.20 per new share.
Voltalia said that this move will give the company the needed resources to achieve at least 2.6 GW of consolidated capacity in operation or under construction by 2023. At least EUR 300 million of the proceeds raised from the capital hike will be allocated for the construction of 1.6 GW, beyond 1 GW in 2020.
Under the terms of a memorandum of understanding (MoU) entered into between Voltalia and the EBRD, the French company has to invest at least EUR 50 million in EBRD operating countries such as Morocco, Tunisia, Egypt or Greece, the announcement says.
(EUR 1.0 = USD 1.138)