German energy firm RWE has raised some €2 billion ($2.4 billion) in a share issue as part of a strategy to expand its presence in the renewable energy sectors.
The company offered some 61.5 million shares for purchase at a price of €32.55 ($38.77) per share, to institutional investors in a private placement, and increased its capital by about 10 percent.
“The current market environment allowed for a successful equity raising at attractive valuation levels for our shareholders,” said Markus Krebber, CFO of RWE. “RWE, having already a solid financial basis, stands for promising growth perspectives in our renewables business with attractive returns and a reliable dividend target: We stick to our plan to increase our dividend for fiscal 2020 to €0.85 per share [$tk per share] and to continuously grow dividend payments in line with the development of earnings in our core business.”
RWE noted the net proceeds from the capital increase will be invested in
