ECONOMY

Terna Energy to raise capital via private placement

terna-energy-to-raise-capital-via-private-placement

Terna Energy has decided to boost its capital by €50.1 million through private placement.

The decision will officially be taken at a general assembly on September 1 at company headquarters. If approved, the company will issue 4,556,757 common shares of a nominal value of €0.30 each, which will be distributed via private placement at an expected price of at least €11.

There will be no first preference for existing shareholders. The target audience is international investors, in order to improve the spread and tradeability of the shares, the company board decided.

A similar transaction in January 2018, had “extremely positive results in the stock’s tradeability and market value,” a board report says. The sale price is close to the stock’s historic highs and the company expects to draw €50.1 million, which will be invested mostly in three wind energy parks on the island of Evia (330 MW), in Viotia, central Greece (30 MW) and the mountainous central Greek region of Evrytania (67 MW).

The 4,293,268 shares that the company has bought back, representing 3.769% of the total capital, will not be sold but canceled.

The previous private placement was used to fund wind parks in Greece and the US. The total capacity of the company’s wind parks is 1,390 MW.