Gas crisis forces Italy's Ansaldo to raise $569 million in capital

A logo of Ansaldo is seen on a machinery at the hydroelectric power plant "Carlo Esterle" of the Edison Energy near Milan, northern Italy, March 10, 2016. REUTERS/Alessandro Bianchi/File Photo

MILAN, Nov 29 (Reuters) - Italy's Ansaldo Energia, a state-controlled supplier of power generation equipment, on Tuesday said it would raise cash and push back debt maturities after warning in August that the Ukraine crisis had hit demand for gas power generation.

Ansaldo Energia is 87.6% owned by Italian state investor CDP Equity with the remaining 12.4% in the hands of China's Shanghai Electric Group (601727.SS).

The capital strengthening will amount in total to 550 million euros ($569 million).

As part of it, CDP Equity will convert into equity a 200 million euro loan it had extended to Ansaldo as well as 50 million euros in overdue interest payments.

Ansaldo Energia had said in August the war had derailed its financial targets for the year by boosting use of coal-fired plants while reducing investments in gas-generation facilities.

Like rivals, the company also had to contend with higher costs for materials used in production, energy and gas prices.

Ansaldo Energia will also negotiate with a group of banks an extension to 2027 of the maturity of credit lines set to expire in 2023, it said.

It will also push back to 2028 a loan due in 2024, it added.

($1 = 0.9670 euros)

(This Nov. 29 story has been refiled to correct ownership data in paragraph 2 to reflect 2020 capital increase)

Reporting by Valentina Za; Editing by Lisa Shumaker

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