QIA (Qatar Investment Authority), the sovereign wealth fund of the Qatar, will invest EUR 2,427.6 million ( $2.38 billion) in RWE AG (RWE) to support RWE’s accelerated ‘Growing Green’ strategy.
RWE AG (RWE) is a Germany-based holding company. The Company is engaged in the generation, transmission, distribution, and trading of electricity and gas.
RWE will issue a mandatory convertible bond to a subsidiary of QIA. The bond will be converted into new ordinary bearer shares expected to represent just under 10% of RWE’s existing share capital (and approximately 9.09% of the enlarged share capital post conversion), RWE said in a statement.
The proceeds of the bond will be used for the acquisition of Con Edison Clean Energy Businesses.
Markus Krebber, CEO of RWE AG, said: “QIA‘s long-term capital commitment enables RWE to finance the acquisition of Con Edison Clean Energy Businesses and hence will drive our additional green growth in the years to come.”
QIA was established in 2005 to protect and grow Qatar’s financial assets, and to help diversify the economy.
Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA, said: “QIA is actively investing in companies that can have a positive impact on society and shape the future of sustainability by making energy transition a reality.”
Last month, the $445 billion sovereign wealth fund led a $245.11 million Series D financing round for Innovafeed, a global biotech company and a leader in the production of insects-based protein for animal and plant nutrition.
(Writing by Seban Scaria email@example.com; editing by Daniel Luiz)