EDPR intends to invest EUR20bn to deploy 17 GW of renewables

EDP Renováveis S.A. (EDPR) has announced its Business Plan 2023-2026 on its Capital Markets Day, revealing plans to invest EUR20 billion (US$21.3 billion) to deploy 17 GW of renewable additions by 2026. The company plans to partially finance its investment plan through the increase of share capital and aims to raise equity, subject to corporate approvals and favorable market conditions.

EDPR has signed an investment agreement with an affiliate of GIC Pte Ltd, Lisson Grove Investment Pte. Ltd., which has committed to subscribing EUR1.0 billion (US$1.06 billion) to the company. The subscription is subject to market conditions and a standard lock-up period of 90 days, at a price between EUR19.25 (US$20.5) and EUR20.50 (US$21.8) to be determined when the equity raise is launched. Under the agreement, EDPR has the option to reallocate up to EUR150 million (US$160 million) which it may offer to a selected number of institutional investors at the same price agreed with GIC.

The commitment by GIC to subscribe shares in EDPR is subject to the company's decision to launch the transaction at an appropriate time vis-à-vis market conditions. The company's investment plan seeks to expand its renewable energy portfolio and contribute to the transition to a more sustainable energy system.