The capital increase is in line with commitments taken on by the group
- The operation will allow the company to bolster its balance sheet and complements its divestment plan.
- The move will allow the group to fulfil its key objective of maintaining its credit ratings, while consolidating its financial strength.
IBERDROLA will launch a capital increase of at least €1.25 billion, equivalent to just over 4% of its current equity. The operation will allow the group to meet the financial ratio commitments it has taken on and complements its €2.5 billion divestment plan.
The capital increase is in line with IBERDROLAs commitment to strengthen its balance sheet and meet its key objective of maintaining its current A credit rating.
The company wanted to take advantage of the current market situation where recent issues have been well received as well as the positive reaction to degearing.
The lead banks for the issue are JP Morgan, Merrill Lynch and Morgan Stanley, while Santander will act as coordinator and agent. The increase will be carried out via an accelerated bookbuilding offer directed at qualified and institutional investors. The issue will comprise ordinary shares of the same characteristics of issued equity in the market but will not be entitled to the dividend payment due on 1 July.
The operation will allow the company to maintain its financial strength with a liquidity position of more than €9 billion, while maximising long-term value for shareholders and maintaining its current dividend policy. At the same time, it allows IBERDROLA to optimise its capital structure and fulfil its investment commitments.