Vestas raises $1bn as SunPower plans $400m share deal

Two of the world's largest renewable energy firms, Danish wind turbine manufacturer Vestas and California-based solar specialist SunPower, have this week announced plans to raise fresh cash through share issues as both companies seek to bolster their financial position and fund expansion plans.

Vestas announced on Wednesday that it had successfully raised 5.98bn Danish crowns ($1.05bn, £704m) in a fully subscribed share issue that saw 18.5 million new shares issued.

"The capital increase has been subscribed for at a price per share of 323 Danish crowns and in a private placement sold on to institutional and professional investors," the firm said in a statement.

The move came just a day after the company announced a 70 per cent rise in first-quarter profits to €56m (£50m), while also confirming that lower than expected demand in northern Europe would result in 1,900 job cuts, including 600 redundancies at its only UK production plant on the Isle of Wight.

The company said that the new funds would be used to "further strengthen Vestas' capital resources, especially to position Vestas to quickly and efficiently exploit the opportunities offered by the credit crisis in a technology-based industry".

Some of the funding is likely to be used to further boost the company's position in emerging markets, such as China, where it is seeking to rapidly expand its presence.

Meanwhile, SunPower followed the release of a disappointing set of first-quarter results with an announcement yesterday that it is to sell nine million shares of common stock and $175m in convertible debt in an attempt to raise about $400m.

The company said in a statement that it would use the fresh funds for general corporate purposes and capital projects, although it also hinted that it "may use a portion of the net proceeds" for future acquisitions of other businesses or technologies.

The move comes as SunPower bounced back from the news that it had recorded a surprise net loss of about $5m for the first quarter, with the announcement that it has secured a deal with Florida utility FPL Group to provide it with 600MW of solar panels.