Arise rights issue targets growth
Swedish wind developer aims to raise Skr245m next month
Swedish wind power developer Arise aims to raise about Skr245m (€26m) through a rights issue to boost growth.
The company will issue a convertible loan with preferential rights for existing shareholders by the end of March. It carries an annual interest rate of 5.75% and is due 31 March 2022.
Arise said the issue will allow it to enhance growth in development and management, to exploit consolidation opportunities and to increase the value potential of its portfolio.
It will also strengthen its financial flexibility, reducing capital costs and to helping repay bond loans due this year.
The issue, which will trade on Nasdaq Stockholm, is fully-supported by existing shareholders and Swedbank.
The prospectus is expected to be published on 20 February and the subscription period runs between 28 February and 16 March.
Arise, which manages about 665MW of wind capacity, swung back to profit in the fourth quarter of the year.
It reported a pretax profit of Skr12m, compared with a loss of Skr4 a year ago. Pretax losses for the full year narrowed to Skr52m from Skr164m as net sales rose to Skr594m from Skr487m.
Total production dropped to 640GWh from 774GWh in the previous year due to fewer wind farms in operation and weaker winds.
“It is very gratifying that some of our major shareholders have chosen to support this issue,” chief executive Daniel Johansson said.
“The issue is 100% supported by the combination of subscription undertakings, a Letter of Intent and underwriting agreements.
“We will now boost growth together with our customers and the issue provides us with a stronger financial position from which to take action.”