German Nordex plans to increase its share capital by 13.8% by issuing roughly 29 million new shares, reads a statement from the company.

The capital increase is to happen by granting major shareholder Acciona exclusive rights to acquire the new shares. Acciona already holds a 40.97% stake in the company.

Payment will go through loan receivables due to Acciona’s former shareholder loan to Nordex. The net total amounts to EUR 347m.

”In the opinion of the Management Board, the implementation of the proposed capital increase would significantly improve its financial performance and strengthen its capital structure,” statement reads.

In particular, interest costs would diminish substantially by roughly EUR 47m annually. The proposed capital increase also builds on the strategy to strengthen the balance sheet against short-term risks currently facing the sector.