NextEra will raise $1.5 billion for energy projects

NextEra Energy, a utility firm, announced on Monday that it plans to raise $1.5 Billion through the sale equity units in order to fund new projects.

Utility companies across the United States are increasing their investments in power projects in order to meet a spike in demand that is expected, driven by artificial intelligence data centres.

This would be the company's second fund raising initiative this year. The funds raised will be used to invest primarily in the energy and power projects.

NextEra reported that its renewable arm had a backlog in the third quarter of 24 gigawatts.

The company announced on Monday that each equity units, issued at a stated $50 amount, will be a contract for NextEra common stock to be purchased in three years, in cash, and on a premium ranging from zero to 25 percent, in comparison to the closing price on Oct. 28.

NextEra's shares closed Monday at $82.87, up 1.8% but fell 2.4% after the bell.

The company said that the unit offering also included a 5% undivided interest in a NextEra Energy Capital Holdings bond, due Nov. 1, 2029. This debt would be issued with a principal amount of $1,000. (Reporting and editing by Mohammed Safi Shamsi in Bengaluru)

(source: Reuters)