Sweden's Minesto Plans to Raise SEK 130 Million to Advance Tidal Energy Projects

en.Wedoany.com Reported - On October 21, Swedish marine energy company Minesto announced plans to raise approximately SEK 130 million through a rights issue to existing shareholders, aimed at advancing its first commercial-scale tidal energy power generation projects in the Faroe Islands and Ireland. The company has secured subscription commitments and guarantee arrangements totaling approximately SEK 78 million, covering about 60% of the planned financing. The Board of Directors intends to formally make the issuance decision on November 25, subject to approval of the relevant authorization by an Extraordinary General Meeting convened on November 23.

The financing will prioritize supporting the Hestfjord project in the Faroe Islands and the Euro Dragon Farm project in Ireland in reaching the investment decision stage. The proceeds will be used to complete project permits, detailed engineering design, form investment consortia, and facilitate the implementation of subsequent engineering investments. Minesto also plans to use the proceeds to advance the microgrid project currently under construction in the Faroe Islands and subsequent market development, upgrade its Dragon series tidal energy power generation equipment, and provide matching funds for partner-led projects.

Among these, the Euro Dragon Farm in Ireland has a planned installed capacity of 10 MW and was selected on October 19 for funding under the EU Innovation Fund, with a proposed support of EUR 20.2 million. Minesto plans to raise part of the development funding through this rights issue to advance the project's subsequent permitting, design, and commercial investment arrangements.

Under the financing structure, the largest shareholder Corespring New Technology has committed to subscribe SEK 10 million, management shareholders have committed to subscribe approximately SEK 500,000, and Vator Securities will provide a minimum subscription guarantee of SEK 67.5 million. The company explicitly stated that its existing working capital is insufficient to cover its established commercialization and technology development plans, and therefore intends to supplement funding through a new share issuance. The aforementioned subscription and guarantee arrangements have not yet been secured by bank guarantees, frozen funds, or pledges.

According to the preliminary issuance timetable, Minesto plans to determine the list of shareholders entitled to preferential subscription rights on December 3, open the subscription period from December 7 to 21, and announce the issuance results on December 23. The final issuance price is expected to be at a discount of approximately 30% to the theoretical ex-rights price. The specific subscription price, number of shares to be issued, and issuance ratio will be announced after the Board of Directors formally makes its decision.