EDPR in capital raise

The Portuguese renewables energy company EDP Renováveis has raised capital of €79.4 million by a corporation of reserves.

A reserve is a retained earnings secured by a company to strengthen a company’s financial position, clear debt & credits, buy fixed assets, company expansion, legal requirements, investment and other plans. These are usually done to save the cash from being used in other purposes.

It follows the conclusion of a scrip dividend programme (when companies issue SCRIP dividends, it means they are giving investors the option to receive additional shares instead of a cash dividend) whereby 97.7% of the incorporation rights issued under this programme were converted into 15,877,770 shares.

This increase in capital of €79.4 million through the incorporation of reserves increased the company’s share capital to almost €5.2Bn.

The company led by Miguel Stilwell d’Andrade also informs that the “new shares are fungible with other EDPR shares and provide holders from that Friday (23 April, 2024) with “the same rights as those conferred from other existing shares before the capital increase.