Morgan Stanley has turned an advisory mandate from Electricidade de Portugal into a lead role in the electricity group's €1.2bn ($1.4bn) rights issue, the bank's first equity capital markets deal for the Portuguese firm.

Electricidade de Portugal is increasing its stake in Hidroeléctrica del Cantábrico the Spanish energy company, by 56% to 95.7% by purchasing an additional €1.2bn stake from four shareholders. The rights issue is financing the acquisition.