Iberdrola raises $5.9 billion to fund grid investment
Iberdrola, Europe's biggest utility, announced a capital increase of 5 billion euros ($5.87 billion), to fund power grid investments in Britain and the United States.
The company intends to increase its annual investment to 15 billion euros. This is an increase from the current level of 12 billion euros. It will build on its shift to upgrading and expanding electricity grids in countries with steady and healthy returns, such as America and Britain.
The company's new strategy will be funded by the cash raised along with debt, operating funds, asset sales, and partnerships.
One of the bookrunners stated that shares sold through an accelerated bookbuilding process were to be priced at 15,10 euros. Iberdrola closed Tuesday's trading at 15.895 euro.
The Spanish stock exchange regulator stopped trading in Iberdrola shares on Wednesday.
Separately the utility reported that the first-half net profits declined by 14% compared to a year ago, when the results included the sale gas assets in Mexico.
The net profit for the quarter was 3,56 billion euros (4,18 billion dollars) compared with 4.1 billion euro a year ago.
Profits were up by 20% excluding one-offs.
(source: Reuters)
