Brazil's Renova Energia approves new capital increase

The board of Brazil's Renova Energia has approved a capital increase of up to 286mn reais (US$54mn) via a private subscription of shares to capitalize loans held by the company's creditors. 

The initiative is part of the judicial recovery (similar to US Chapter 11) plans of Renova and Alto Sertão Participações, which is responsible for the Alto Sertão III wind power project. 

The undertaking, which began commercial operations for 304MW in September, will have a total installed capacity of 433MW.

This is the second capital increase approved by the company in three months, following an operation carried out at the end of August, when its capital was increased by 789mn reais. 

At the end of the third quarter of 2022, Renova had a total net debt of 894mn reais with banks BNDES, Bradesco, Itaú, Citibank, ABC and Safra. 

In the period, Renova posted a 17.3mn-real loss, compared with a 45.2mn-real loss in the same period of 2021. 

The company currently has a portfolio of projects under development with approximately 6.5GW of wind energy capacity and 350MW of solar power, in addition to 14 undertakings with licenses issued by environmental agencies, totaling about 5.4GW.