Good day, and thank you for standing by. Welcome to the NKT conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, Claes Westerlind. Please go ahead.
Thank you. Good morning, everybody, and thanks for calling in. It's an exciting day, and we wanted to talk to you about what we launched this morning, the rights issue. I will change the first slide and draw your attention to the disclaimer, and also to ask you to read through that carefully. Moving on, I'm here today, Claes, and I'm the President and CEO of NKT since about a month now. Next to me, I also have Line Andrea Fandrup, who is the CFO of NKT. We wanted to address two topics today. That's the rationale for the transaction that we are now announcing, and also a little bit around the structure of the same.
Starting to reflect a little bit about this company and the development in recent years, I think most of you would be aware what we have come through, and it's fair to say that if you compare to 5 to 10 years ago, we are a very different company today. We were, in 2016, 2017, in a transformational phase with a very large acquisition of the high voltage cables unit from ABB, and that enabled us as a company, the firm step into the D.C. market, which has been a pivotal element in the recent years and is expected to be even more so in the coming years. We did the demerger of Nilfisk. We invested a lot of on core assets, transforming into the structure which we had.
In the years to come, there was a challenging market ahead, especially on the HVAC specifications, where there were dissolutions of large orders, that was due to political, legislative reasons and also aspects. In late 2018, things started to pick up again for NKT. We went into stabilization phase, where we managed to do a certain backfill of the orders that we were like previous years. We also launched two capital increases in 2020, which helped us also in the further development of the company and the announcement that we did in 2020 of an investment in the solution business in the realm of EUR 150 million, which was targeting both the capabilities and capacities in Karlskrona, respective Cologne factories.
We also, in the last three years, have been very successful in terms of ordering pace. As it stood on the, on the back end of the first quarter this year, we are pleased to read the blue order backlog, and more has happened since. Today, we for you, with a very strong market outlook, that we feel comfortable and confident around. We have a clear path forward for this, that actually in mind, with the investments we have done, with what we have shown in the recent years, and this is where we have also announced another significant growth step of NKT being the large investment in the Karlskrona factory. This comes, then to this day, where we are now also aim to raise some further capital to further improve and strengthen NKT as a company.
With that development in mind and zooming in on the Karlskrona side, with one of the examples we have in NKT of the success we have seen in recent years. This site is the largest site we have within NKT on the high voltage side. It is a pivotal site not only for NKT, but also for the green transition in Europe. The factory has been in continuous development since 2010, and also before that, in fact, where we have made a number of larger and more modest expansions, such as building another factory called the Northern Factory back in 2010-2015. We've extended our harbors, we have expanded the storage capacity, we built, commissioned, and are using still NKT Victoria.
As I said on the previous slide, in 2020, we built the second tower and this connections. Now and for the next couple of years, we will do a significant expansion, both in terms of capacity, but also capabilities. That's in the onshore factory in Karlskrona and also what we sometimes call our offshore factory, meaning the cable installation vessel. We will aim to add another vessel to our fleet. I mentioned the market situation as it stands for the moment, which is a very, very favorable market situation. The slide here is trying to depict the same, where from 2030, from 2020 to 2030, there is a significant growth expected in the global electricity generation. You can see going from 7.5 to 14,000 GW.
Out of that growth, as can also be seen, the fossil fuel will not see big growth. But the middle part will, being very loyal to the green transition, take place in solar, wind, and also other renewables. These are access where NKT as a company is a technology provider. Our applications, as an example, a business is providing MV cables for the solar business. Our HV side of the business is providing interconnectors, which could be generated from solar expansions, but also offshore wind and also onshore wind applications. Of the wind as such, taking that as an example, it is a massive growth that will take place in the next couple of years.
Only the number 12%, therefore, offshore wind doesn't seem like huge, but putting in relation to the growth and where we are today, it's a massive growth that will transform itself to cable kilometers at the end of the day. If we go into the offshore wind part a little bit further on the next slide, then we can see that there are a number of different ambitions depending on the country. They are all countries, and the EU as a whole set the ambitions. Europe aims for at least 300 GW of offshore wind generation by 2050. That is basically a consistent message and ambition from all countries, as can also be seen at left there. I believe in that growth, we need to recognize two aspects.
One aspect is that NKT provides the lifelines to offshore wind farms. As an example, with our power cables and them working properly, there is no offshore wind to be integrated into the main grid. On top of that, I mentioned solar, but also offshore wind. It changes the demand supply pattern in our electricity grids, creating further need for interconnectors between countries and between regions. Here we take Europe as an example, but there are also other examples. That's where we are the technology provider and the high voltage solution part. We provide turnkey interconnectors, offshore wind applications, power from shore applications, and also undergrounding, with the best example maybe being the German corridors. We do this offshore, we do it onshore, we do it not only cable production-wise, but also installation-wise.
In essence, our range of high voltage solutions is speaking directly into the green transition, which Europe is undertaking for the moment. If you flip to the next slide, that can also be seen in names and numbers. The market has grown significantly. I've had the privilege to be part of this industry now for about 15 years, and I've never seen a market like this with the strength that we are seeing for the moment, which is shown to the upper right in the annual project awards expectations. Can also be noted in the awards that we have been able to achieve now in 2020, 2021, 2022, and also now 2023 year to date, where we have been able to secure orders across all segments, interconnectors, undergrounds, offshore wind farms.
We have, as you can see, a spread from a geographical perspective. We have new customers. We also have , both which are testament to our ability to be unique, but also customers return to us. That, seen from a total perspective, also, can be recognized in our market share, which has been continued to grow. With those words, ladies and gentlemen, I wish to hand it over to Line.
Yeah, thank you very much. On this slide, just to recap what we really also shared is the updated financial ambitions, and building on top of what we said in September 2022. What we've seen here since is exactly what Claes speaks into, a very strong market development, especially in our voltage segment, but also in the medium voltage segment. We are looking into a continued growth of the company towards 2028 of above 12% target on the revenue growth. We are seeing a good uptake in our EBITDA. Until 2025, we expect about EUR 300 million, corresponding to the upper end of the margin range we communicated back in September 2022.
We're expecting above EUR 500 million EBITDA in 2028. The uptakes from 25 to 28 is fully from the expansion in, on the, in Karlskrona. There's also a corresponding improvement in ROCE of above 15% in 25 and above 20% in 28. This is all due to earnings, but also very much due to backlog growth and improving capital improvements. The investments in the high voltage capabilities that we are undertaking is fully accredited once and operation from 2022. On the next one, just to underline the reason for initiating the rights issue and also the eventual use of proceeds.
This is more or less a synthesized version of Claes' introduction of the very strong markets, our investment in the Karlskrona side, securing a robust capital structure. We are becoming a larger company with a significant part of the business being the project business, which is associated with some complexity, longer lengths of time horizons. We execute on much larger projects that we only took for five years ago. This we need to secure a strong financial structure around. Turning to the last of the presentation is the transaction structure, going through a bit of the formalities here.
Today we launched the rights issue, which has an offering of the, or it's approximately DKK 2.74 billion, which corresponds to the EUR 268 million in gross proceeds. What the structure of the offering is that at subscription price of 255 Danish crowns per share, there is a subscription ratio of 1 to 4. What that means is that all existing shareholders in the company will receive 1 subscription right for each share held at the date of the record date. With 4 subscription rights, that entitles to have 1 share of the new share into the rights issue.
User proceeds, not to repeat ourselves listed here, but also the lock-up date being 180 days for the board of directors, 180 days for executive management, and 180 days on to as such. Finally, a bit on the timelines on the rights issue here. The perspective is launched today. On June 12, the period for trading rights starts. On June 14, the period for subscribing to the new shares starts. On June 23, the trading period for rights closes, and on June 27, the trading window for the new share closes. On June 29, we will public the results of the offering, and on July 4, we expect to complete the offering.
Finally, on the fifth of July, sorry, I think I said June, but it was the fourth of July, on the previous one. On the fifth of July will be the first day of trading, the new shares, in combination with our existing. This lines out the whole process from. With that we'll turn into Q&A.
Thank you. As a reminder, to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Please stand by while we compile the Q&A roster. We will take our first question. The question comes from the line of Daniela Costa from Goldman Sachs. Please go ahead, your line is open.
Hi, good morning. Thanks for taking my questions. I actually have three, but they are quick. First, I think sort of originally, NKT has said it could be up to 50% issuance, and then you seem to be coming sort of significantly lower than that. Can you give us some color between when you first sort of laid out and thought about the size of the potential issuance versus now, sort of, why didn't you go for sort of the higher part of the range? Is that the CapEx was cheaper in the end, or sort of like interested on the rationale there? Second thing, can you lay out in terms of either euros or kilometers, what type of extra capacity this third tower will give you when we think about...
I think in the past you have commented on the max type of sales in solutions, so how much does this add? Third, in terms of the vessel, I guess, can you say, were you outsourcing any installation at the moment, and will this vessel allow more outsourcing, or this is all incremental over and above whatever you are doing now, but for newer contracts, rather than for any outsourcing of installation? Just trying to think about the advantages of the potential at margins of having, in case you're doing any outsourcing, having the vessel for everything now. Thank you.
Thank you, Daniela, for the questions. Start out with the first one. We'll carry through the possibility to go on the next ones. Going a little bit backwards here in terms of the timeline and the choices and communications from our side. So to say, over winter time, the market really picked up, structurally also, we will see the pipeline of tenders coming in being larger and having longer time horizons. This was, let's say, the early days of the trigger event we were expecting and also communicating at the CMD. It came more fast-paced that the market really picked up.
We could see that there would be a spring where we would need to tender into much larger projects, and we would need, possibly, if we were successful, to establish more capacity. We knew this, we needed to secure that we could build that capacity, and we would also be able to tender and secure the financial structures, i.e., guarantee lines and the like around the tenders. When you commit on a tender, you need to be able to say, we will be able to produce, and we'll be able to secure the whole project with these financial structures.
So when we saw that the tender timelines would mean that open in spring of this year, then we also that we need an authorization of up to 50% to secure this. And that we had to commit, because at that point, we still had undergoing discussions of where to go into the cable factory and what to invest in, and also how to secure the guarantee loans and things like. So we went out communicating, as you stated, and then what happened after that date was that we became more specific, and with the board of directors, eventually decided that Sweden was the most attractive place to actually expand.
This also enabled dialogue with the Swedish municipalities, regions, in terms of how attractive was the case for them in Sweden. This enabled further that the Swedish export credit agencies wanted to step up and engage even further with NKT to secure and guarantee lines. In the consequence of choosing Sweden as the site for a new factory, that actually enabled some elements, it also enabled that this right issue we launched today is much below 50% and more around 25%, simply because the funding used is then different at this point in time.
Okay. I will take the next two questions. The first one was the extra capacity in the new tower. It's a good question, I'm afraid I have to give a little bit of a fuzzy answer. Not so that I don't want to respond to you, but also being mindful about competition, and this is the puzzle exactly that we are trying to make about our competitors, and they about us. What I can say, it's less of an incremental increase if you compare to previous investments, and this is a step change in terms of capability and also capacity. The easiest way is to view this, we have two towers in Karlskrona today, and now we're adding a third tower, and then you can linearly make the extraction.
Actually this will add more capacity than such a simple analysis. If we move away from what capacity means in terms of kilometers, I would draw your attention to the medium-term guidance that we have provided with the CAGR between 2025 and up to the guidance year of 2028. The difference there, that you will get accumulation, you can attach that the absolute majority of it to the new investment. Which will also show the significant capacity investment in terms of money. Then also consequently, the same analysis can be done on the profitability by comparing the guidance between these two years. This is a significant addition. On the vessel side, today, we have NKT Victoria at our disposal, which we are using.
We are adding capacity also during this year. We are completing the investments in Karlskrona, so more capacity will come online. So we will come to a breaching point where we would have to go to outsourcing, which I think we are almost already there. Of course, with this new capacity addition, for sure we will be there. That's why it's a natural decision, both from an insource, outsource perspective, but also risk management perspective, to own our own second best. There will always be cases when we will or may do outsourcing for spreads which don't deserve such a delay. As an example, a nearshore operation with very shallow drafts of the vessel, but the majority of our projects will be installed with our own assets from a cable perspective.
Very clear. Thank you.
Thank you. Once again, if you do wish to ask a question, please press star one and one on your telephone. There seems to be no further questions. We'd like to hand back for closing remarks.
Yep. Thank you so much for attending this meeting, and something that we think is very exciting for us as a company, but also for the green transition in Europe. We thank you for your participants and wish you a good day.
This concludes today's conference call. Thank you for participating.