Lisbon, March 21, 2021 – Morais Leitão advised EDP and EDP Renováveis (the largest Portuguese utilities, both listed on Euronext Lisbon) on a capital increase of around €1.5 billion in EDP Renováveis by private offering, through the issue of 88,250,000 new shares in the company. The advisory team comprised members of its corporate, M&A, capital markets and tax law departments, headed by partner Ricardo Andrade Amaro and including partners Nuno Galvão Teles, Francisco de Sousa da Câmara and Bruno Santiago, senior lawyer Diana Ribeiro Duarte and associate Pedro Capitão Barbosa.
The operation is one of the largest capital markets transactions in Portugal in recent years and the largest of the year so far. It was carried out in the context of the disclosure of the new business plan of EDP and EDP Renováveis, under which the companies announced investments of approximately € 19 billion to install approximately 20 GW of renewable power plants until 2025.
The overall subscription price for the capital increase was fixed in advance through an accelerated bookbuilding of 88,250,000 EDP Renováveis shares by Morgan Stanley and Citigroup to institutional investors, facilitated by the lending of such shares by EDP to the banks. Morgan Stanley and Citigroup subsequently used the funds obtained from the accelerated bookbuilding process to underwrite the capital increase announced by EDP Renováveis and consequently return to EDP the loaned shares.
This financial structure is innovative in the European capital markets and absolutely pioneering in Portugal.
King & Wood Mallesons (Madrid) provided legal advice to EDP and EDPR on aspects of Spanish law. In turn, DLA Piper advised EDPR's board of directors on the transaction.
The coordinators in charge of the offer were, in turn, advised by Uría Menéndez (Madrid and Lisbon offices).