By Sergio Goncalves
LISBON (Reuters) - Energias de Portugal (EDP) (EDP.LS: Quote, Profile, Research, Stock Buzz) is optimistic that an initial public offering (IPO) of its renewable energy unit will go ahead as planned in June, Chief Financial Officer Nuno Alves said.
Speaking at the Reuters Latin America summit in Lisbon, Alves said despite volatility, markets are "better than they were two weeks ago."
"I am more optimistic. We have been optimistic since the beginning of the operation," Alves said. "Our plan continues to be to go to the market in June, at the beginning of June."
He said if there is a "terrible situation that leads to the cancellation of the IPO, EDP has alternatives." But he ruled out a capital increase for EDP to raise financing.
"A capital increase is completely out of the question -- EDP is not going to carry out any capital increase," he said.
If the IPO cannot be launched due to market conditions, EDP's options would include finding one or two partners that could buy five to 10 percent each of the renewable energy unit, Alves said.
"Our number one objective is to carry out the IPO in June because we continue to think that it makes sense and there is demand," he said, adding that the final decision to go ahead or not will be taken in May.
EDP, the world's fourth-largest wind power company, said in January it would float 20 to 25 percent of its renewable energy unit, which includes U.S. subsidiary Horizon Wind Energy and European unit NEO. Continued...
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