Energie Baden-Württemberg AG (EnBW) has finalised a capital increase totalling €3.1bn ($3.36bn) after issuing 53,556,139 new shares at a price of €58 each. According to the press release, the vast majority of shareholders subscribed to the operation, reflecting investors’ confidence in the trajectory of the Karlsruhe-based energy company. The operation was carried out based on a resolution adopted at the end of June and backed by the main shareholders, including the State of Baden-Württemberg and Zweckverband Oberschwäbische Elektrizitätswerke.
Funds raised to support record investments
EnBW stated that this strengthening of its equity will enable the financing of the largest investment programme in its history, valued at €50bn ($54.15bn) between 2024 and 2030. Nearly €26bn ($28.16bn) from this total will be allocated between 2025 and 2027. These investments will primarily focus on expanding electricity transmission and distribution networks, constructing wind and solar farms, commissioning hydrogen-ready flexible power plants, as well as developing a core hydrogen network and electromobility in southwestern Germany.
The company stated that the capital increase significantly improves its financial flexibility. According to Thomas Kusterer, Deputy Chief Executive Officer and Chief Financial Officer, this transaction, combined with operating earnings and future participation models and external financing, ensures the necessary funding base for projects planned through 2030.
Accelerated procedure and imminent listing
The issuance of new shares used a simplified procedure enabled by a recent provision under the European Union Prospectus Regulation, allowing the administrative process for such an operation to be expedited. Once the capital increase is registered, EnBW’s share capital will reach €845,211,758, divided into 330,160,843 shares.
The listing of the new shares is scheduled for July 18, which is expected to enhance market liquidity. The company stated that the transaction reinforces EnBW’s position as Germany’s leading integrated energy provider. Dr Georg Stamatelopoulos, Chief Executive Officer, said that the successful completion of the transaction demonstrates shareholders’ commitment to the group’s long-term growth strategy, as reported in EnBW’s press release dated July 15.
