NextEra Energy Plans to Raise $1.5 Billion for New Projects

(Reuters) – Utility firm NextEra Energy (NYSE:NEE) announced on Monday its intention to raise $1.5 billion through the sale of equity units to fund new projects.

Utility firms across the United States are increasing investments in power projects to prepare for an anticipated rise in demand, driven by the expansion of artificial intelligence data centers.

This fundraise marks the company's second initiative this year aimed primarily at investing in its energy and power projects.

NextEra, which owns the world’s largest renewables business and one of the largest U.S. regulated electric utilities, reported a backlog of 24 gigawatts (GW) in the third quarter for its renewable segment.

On Monday, the company specified that each equity unit, offered at $50, will comprise a contract to purchase NextEra's common stock in three years at cash and at a range of zero to 25% premium, according to the closing price on October 28.

NextEra shares increased by 1.8% to $82.87 on Monday but fell 2.4% in after-hours trading.

Additionally, the unit offer will involve a 5% undivided beneficial ownership interest in a NextEra Energy Capital Holdings debt, maturing on November 1, 2029, with a principal amount of $1,000.