Energy company E.ON has taken to the capital market after a record loss in 2016. With the issuance of around 200 million shares, the utility collected €1.35 billion ($1.45 billion) overnight, the company announced Thursday. With the proceeds of the 10-percent capital increase, E.ON intends to finance part of its total contribution of €10 billion to a public fund that will cover the costs of Germany’s nuclear-power phaseout.
E.ON CEO Johannes Teyssen had already announced capital measures of up to €2 billion. In addition to a capital increase of up to 10 percent, he also mentioned hybrid securities could be an option. With the €2 billion, he wants to finance the risk surcharge that E.ON has to pay for the nuclear phaseout in addition to another €8 billion for the public nuclear fund.
The federal government has agreed to take over the storage of nuclear waste in exchange for the major nuclear power companies covering the costs through a €23.6 billion fund. Germany aims to completely phase out nuclear power by 2022.