Increased Capital Funding: EnBW concludes capital increase for EUR 3.1 billion
EnBW Completes Largest Capital Increase in History for Climate-Neutral Transformation
EnBW, a German energy company based in Karlsruhe, has successfully completed a long-planned capital increase, marking a significant milestone in implementing its investment program. The company sold over 53.5 million new shares, raising approximately 3.1 billion euros.
The capital increase, according to Georg Stamatelopoulos, CEO of EnBW, is a crucial step towards the company's transformation towards climate neutrality. EnBW plans to invest around 22 billion euros in the climate-neutral transformation of the energy system between 2024 and 2030.
This investment will be dedicated to accelerating EnBW’s transformation towards climate neutrality, including the expansion of renewable energy generation, grid infrastructure, and innovation in sustainable energy technologies. The figure reflects EnBW's commitment to achieving climate targets aligned with the Paris Agreement for decarbonizing the energy sector in that time frame.
The investment program includes expanding power grids, building new wind and solar plants, hydrogen-capable gas power plants, the planned hydrogen grid, and electric mobility. EnBW expects almost 26 billion euros to flow from 2025 to 2027 as part of this program.
Thomas Kusterer, the deputy and CFO of EnBW, explained that the capital increase significantly expands the company's financial scope. With more of its own funds, EnBW can better access capital markets for its planned investments in the energy system.
The new shares were offered exclusively to EnBW shareholders, including the state of Baden-Württemberg and the OEW consortium of nine Swabian counties, who each hold almost 47 percent of the company. Both the state of Baden-Württemberg and the OEW consortium had previously committed to exercising their subscription rights up to a volume of 1.5 billion euros each.
For the current financial year, the company expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between 4.8 billion and 5.3 billion euros. However, the company's EBITDA fell from 6.4 billion to 4.9 billion euros from 2023 to 2024, mainly due to developments in gas and electricity prices.
EnBW supplies around 5.5 million customers and is planning investments of up to 50 billion euros for the climate-neutral transformation of the energy system from 2024 to 2030, which is the largest investment program in the company's history.
Stamatelopoulos had campaigned for the capital increase with the main shareholders last year, highlighting the importance of the funds for EnBW's ambitious plans. He stated that the capital increase marks a significant milestone in implementing the company's investment program.
To stay updated on EnBW's progress, a Staatsanzeiger subscription is required to subscribe to topics and save articles.
In the pursuit of EnBW's climate-neutral transformation, the capital increase plays a crucial role in financing the company's investments, which involve expanding renewable energy generation, grid infrastructure, and sustainable energy technologies.
With the completed capital increase, EnBW significantly broadens its financial scope, enabling better access to capital markets for its planned investments in the energy system across municipalities.
