RWE initially wants to use a bridging loan for the takeover. This is to be partially refinanced by issuing a mandatory convertible bond with a total nominal value of almost EUR 2.5 billion and a term of up to one year. The paper will be subscribed to by Qatar Holding, a wholly owned subsidiary of Qatar Investment Authority, the sovereign wealth fund of the Arab Emirate of Qatar. The bond will be converted into new bearer shares in RWE Aktiengesellschaft, which are expected to correspond to almost ten percent of the current share capital.
Purchase of US solar company: Qatar becomes RWE's largest shareholder
The takeover of a US solar specialist by RWE makes the sovereign wealth fund of the Emirate of Qatar by far the largest shareholder in the Essen-based energy giant.