Iberdrola launches $5.9 bln capital increase to fund grid investments
The company plans to increase its annual investments to around 15 billion euros from a current level of around 12 billion euros, building on its shift towards upgrading and expanding power grids in countries where returns are steady and healthy, such as the U.S. and Britain.
The cash raised, along with debt, operating cash flow, asset sales and partnerships will help fund the new strategy the company will present in September.
The shares offered through a process of accelerated book-building were set to be priced at 15.10 euros, one of the bookrunners said. Iberdrola's share price closed at 15.895 euros on Tuesday.
Spain's stock market regulator suspended trading of Iberdrola's shares on Wednesday morning.
Separately, the utility said first-half net profit declined 14% from a year earlier, when results included the sale of gas assets in Mexico.
Net profit for the period was 3.56 billion euros ($4.18 billion) compared to 4.1 billion euros a year earlier.
Excluding one-offs, profit was up 20%, it said.
($1 = 0.8523 euros)
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