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Denmark

Denmark

Vestas to raise EUR 1.3bn with share issue and credit facility

DENMARK: Vestas has announced that it will issue shares with an approximate value of EUR 450 million, while at the same time setting up an EUR 850 million credit facility.

More than 209 million shares will be released to the market through a private placement to institutional and professional investors.

In a statement, the Danish manufacturer said the share issue would act to strengthen its solvency ratio.

Senior vice president Morten Albaek said that the money would bolster Vestas’ balance sheet, but would not be put towards expansion in new markets or mergers and acquisition activity.

"It is about building confidence," he said. "Customers that we are entering into long-term contracts with will be assured that we will be around in 5, 10, 15 years."

He said this will help Vestas win more business as well as getting better deals with suppliers.

The new credit facility with four banks — Nordea and SEB of Sweden, Norway's DNB and UK-based HSBC — will replace the existing EUR 650 million facility that expires in January 2015. 

Commenting on the arrangement, chief financial officer Marika Fredrikssen said: "We want to compete head to head with our competitors who have a stronger position. Customers want to know we're there for the long term."

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