At the share price before the announcement, this would imply a DY of 1%. The ex-date is set for 20 May 2024, while the payment date is set for 21 June 2024. Besides the dividend, Electrica plans to issue sustainability-linked bonds totaling up to EUR 300m between 2024-2025. We detail both of these pieces of news below.

Yesterday, Electrica published its GSM convocation notice, which included the proposal for the distribution of 2023 profit in the form of dividends. According to the notice, RON 39.9m would be distributed in the form of dividends, which on a per-share basis would imply a gross dividend of RON 0.1178 DPS. Since the payment would be made from the 2023 net profit, this would imply a payout ratio of 6.4% on a consolidated basis.

Furthermore, at the share price before the announcement, this would imply a DY of 1%. The proposal is subject to approval by the GSM, which will be held on 25/26 April 2024. The ex-date is set for 20 May 2024, while the payment date is set for 21 June 2024.

Electrica dividends per share (RON) and dividend yield (%) (2015 – 2024)

Source: Electrica, InterCapital Research

Regarding the bond issuance, Electrica proposed for the GSM the issuance of up to EUR 300m for a single, or several issues of green bonds or sustainability-linked bonds, or a mix thereof, for the period 2024-2025. These may be denominated in both RON and other currencies and may be issued on the Romanian or international capital markets (EU and the US) on the basis of a flexible structure, with a fixed or variable interest rate. The bonds will be nominative, non-convertible, non-guaranteed, in dematerialized form by registration in the account, and may be issued for a maximum maturity of up to 10 years.

Further details about both of these news pieces can be found here.