German utility Energie Baden-W\u00fcrttemberg (EnBW) has completed a rights issue capital increase raising proceeds totalling \u20ac3.1bn ($3.62bn).<\/p>\n
The company\u2019s shareholders acquired 53,556,139 new shares at \u20ac58 each under the rights issue.<\/p>\n
The funds raised will support EnBW’s investment plan scheduled between 2024 and 2030.<\/p>\n
The company plans to invest up to \u20ac50bn in transforming the energy system to achieve climate neutrality.<\/p>\n
A budget of \u20ac26bn is allocated for projects between 2025 and 2027, focusing on enhancing transmission and distribution grids and developing renewable energy sources such as wind and solar farms.<\/p>\n
Investments are also planned for hydrogen-ready gas-fired power plants, infrastructure for a hydrogen core network, and for further expanding electromobility solutions.<\/p>\n
These investments by EnBW aim to secure long-term sustainability while maintaining affordability and reliability in energy supply across Germany’s southwest region.<\/p>\n
EnBW CEO Dr Georg Stamatelopoulos stated: \u201cThe successful capital increase marks a key milestone in the implementation of our investment programme. It also demonstrates the great confidence that our shareholders have in our clear strategy for the future and the long-term growth potential of our company.<\/p>\n
\u201cWe would particularly like to thank our two main shareholders \u2013 the state of Baden-W\u00fcrttemberg and Zweckverband Oberschw\u00e4bische Elektrizit\u00e4tswerke \u2013 together with the shareholder associations and individual investors. They all support EnBW\u2019s long-term course as Germany\u2019s largest integrated energy provider.\u201d<\/p>\n
To streamline the process of raising capital, EnBW utilised an EU prospectus regulation provision for simplified documentation over traditional securities prospectuses.<\/p>\n
Following filing in the commercial register, EnBW\u2019s share capital will stand at \u20ac845m ($986m) divided across 330 million shares.<\/p>\n
The new shares are anticipated to begin trading on 18 July 2025.<\/p>\n
EnBW\u2019s deputy CEO and chief financial officer Thomas Kusterer stated: \u201cThe capital increase significantly increases our financial headroom. Together with operating earnings, which is the most important pillar, participation models and debt funding, we are thus laying the basis for investments planned through the end of this decade.<\/p>\n
\u201cWe are therefore delighted by the confidence and support shown by our shareholders and by the fact that we have been able to successfully complete the transaction within such a short space of time.\u201d<\/p>\n