Greencoat UK Wind to sell up to £315m of shares

Greencoat UK Wind, the renewable infrastructure fund invested in seven Scottish wind farms, has announced a proposed sale of up to 300 million new shares to raise up to £315 million.

Greencoat, an investment trust company, said the proceeds would be used to pay down debt and make new investments.

Greencoat, which has a stock market value of around £542 million, is invested in 18 wind farms across the UK.

Its Scottish wind farm investments include Braes of Doune, Carcant, Clyde, Drone Hill, Kildrummy, North Rhins and Stroupster.

We believe that the future opportunities for Greencoat UK Wind are very exciting,” said Tim Ingram, chairman of Greencoat UK Wind.

“There is a significant asset pool with a healthy number of motivated sellers and we are very well placed to take advantage of this.

“This programme of capital raises announced today will enable the company both to pay down debt, and to take advantage of value-accretive growth opportunities whilst maintaining its very selective acquisition approach.”

Greencoat said that following the acquisition of Stroupster Wind Farm in December 2015 and a 28.2% interest in Clyde Wind Farm in March 2016 for a total of around £280 million, it has outstanding borrowings of £225 million under its revolving facility agreement and £100 million under its long term facility agreement. 

Greencoat’s proposed share issuance programme, subject to approval by shareholders, will issue new ordinary shares at 105p per share.

RBC Europe Ltd, trading as RBC Capital Markets, is acting as sponsor and bookrunner to Greencoat and Kepler Partners LLP is acting as placing agent with regards to the initial issue.

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