Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Alstom to cut debt through €1bn rights issue
(Sharecast News) - French train maker Alstom announced plans to raise €1bn from shareholders on Wednesday, as it looks to slash debt. The TGV manufacturer, the world's biggest train maker after China's state-owned CRRC, wants to reduce debt by around €2bn by March 2025, to avoid its credit rating being downgraded.
As at 31 March, net debt stood at €2.99bn.
The rights issue would be carried out by September, subject to market conditions, Alstom noted. A €750m hybrid bond will also be issued, while the dividend for the year to March end has been scrapped.
It has already announced plans to raise around €700m through divestments, including the sale of its conventional signalling business in North America.
Alstom said the deleveraging plan would allow for the "stabilisation" of its investment grade rating.
Chief executive Henri Poupart-Lafarge continued: "The group is capitalising on the solid operational progress made over the last three years and is launching new initiatives to improve its industrial performance and reduce overheads and indirect procurement costs.
"Altogether, Alstom is now set on a stronger foundations to deliver sustainable profit and cash generation."
Alstom posted sales of €17.6bn in the year to 31 March, up nearly 7% on a reported basis, while orders received fell 8% to €18.9bn
Adjusted earnings before interest and tax rose 17% to €997m, ahead of the €985m most analysts had been expecting.
Two of Alstom's main shareholders - Canada's CDPQ and Bpifrance - have both agreed to take part in the capital raise.
As at 0930 BST, shares in Paris-listed Alstom were up 5%.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.