Published: 13 May 2021 13 May 2021
Avangrid will issue an aggregate of $4,000 million of common stock in a private placement transaction at $51.40 per share. Iberdrola will subscribe $3,260 million proportionally to its current 81.5% participation and Qatar Investment Authority (QIA) will subscribe the additional $740 million acquiring approximately 3.7% of Avangrid common stock. This transaction will reinforce the strategic partnership between Iberdrola and QIA.
A portion of the proceeds of this capital increase will fund Avangrid's proposed merger with PNM Resources, and pay off the intra-group loan agreement with Iberdrola, of $3 billion. A portion of the proceeds of this capital increase will also be contributed to fund the company’s investment plan, financing its announced future growth with over $20 billion of organic investments through 2025. Projects will include the contracted transmission line NECEC and power grid modernisation, as well as in renewable energy - mainly contributing to offshore wind development in the USA, with projects such as Vineyard Wind and Park City Wind and investments in onshore wind and solar projects.