Increased Capital by 3.1 Billion Euros - EnBW wraps up share offering exercise - EnBW concludes successful capital augmentation for EUR 3.1 billion
Energy company EnBW has successfully completed a significant capital increase, raising approximately €3.1 billion through the sale of over 53.5 million new shares. This marks a major milestone in EnBW's investment program, which is the largest in the company's history and is set to accelerate the energy transition.
The investment program, valued at €50 billion, aims to transform EnBW's energy system to be climate-neutral by 2030. The ambitious plan includes the expansion of power grids, the construction of new wind and solar plants, hydrogen-capable gas power plants, the development of a hydrogen backbone, and the promotion of electromobility.
Key details of the investment program reveal that around €32 billion will be invested in the period from 2024 to 2027, ahead of schedule. The investments will be allocated roughly as follows:
- 60% for grids (expanding and modernizing the grid infrastructure) - 30% for sustainable generation infrastructure, including renewables and hydrogen-ready/flexible generation assets - 10% for smart infrastructure for customers, likely integrating digital and customer-facing technologies for energy management
The capital increase is part of EnBW's broader strategy to achieve a sustainable, climate-neutral energy system over the next decade. The new shares were offered exclusively to EnBW shareholders.
Main shareholders, including the state of Baden-Württemberg and the OEW consortium of nine Swabian districts, each holding almost 47 percent of EnBW, had committed to fully exercising their subscription rights up to a volume of €1.5 billion each. EnBW's CEO, Georg Stamatelopoulos, had campaigned for the capital increase among the main shareholders last year.
Thomas Kusterer, EnBW's CFO, stated that the capital increase significantly expands the company's financial scope, providing the necessary resources to drive the ambitious investment program forward.
For the current financial year, EnBW expects adjusted Ebitda to be between €4.8 billion and €5.3 billion. However, the company's Ebitda fell from €6.4 billion in 2023 to €4.9 billion in 2024, primarily due to developments in gas and electricity prices.
EnBW supplies approximately 5.5 million customers, and this investment program is a significant step towards reducing emissions and creating a more sustainable energy future for all. The targets include cutting scope 1 and 2 emissions by 50% by 2027, 70% by 2030, and 83% by 2035 compared to previous levels.
[1] For more information on EnBW's broader strategy, please refer to our previous coverage: [Link to previous article]
The capital increase provides EnBW with the necessary financial resources to invest heavily in their ambitious plan aimed at transforming the company's energy system to be climate-neutral by 2030. This extensive investment program, amounting to €50 billion, will see significant funds allocated towards various sectors such as grids, sustainable generation infrastructure, and smart infrastructure for customers.
The community policy of EnBW is aligned with the investment program, as it aims to create a more sustainable energy future for all, with targets to reduce emissions and promote vocational training in the renewable energy sector, investing in the education and workforce of the future.
