Greencoat UK Wind to pay down debt via 12-month share issuance programme

The Bishopthorpe wind farm in Lincolnshire. Source: BayWa r.e. renewable energy GmbH

May 2 (Renewables Now) - Greencoat UK Wind Plc (LON:UKW), a renewable infrastructure fund managed by Greencoat Capital LLP, today announced a 12-month programme to issue up to 500 million new ordinary shares.

The fund is launching this programme with an initial placing of shares at GBP 1.33 (USD 1.74/EUR 1.55) apiece, which is a discount of 5.2% to the closing stock price on May 1, 2019 and a premium of 9.5% to the last reported net asset value (NAV) of GBP 1.215 as at March 31, 2019. The full timeline for the initial tranche is yet to be published but it is expected to close later in May.

Chairman Tim Ingram commented in a statement that this programme will allow Greencoat UK Wind “to pay down debt and continue to capitalise on the strong pipeline of acquisition opportunities in the UK wind farm secondary market.”

RBC Capital Markets acts as sponsor and bookrunner, while Kepler Partners LLP serves as placing agent with regards to the initial tranche and the programme as a whole.

The fund was listed in March 2013 and has since increased its total net generating capacity to 950 MW. In late March 2019, it completed the acquisition of a 49.9% stake in both the 228-MW Stronelairg and the 94-MW Dunmaglass onshore wind farms in Scotland from UK utility SSE Plc (LON:SSE).

In February, UKW raised GBP 131 million in gross proceeds through a share placing with a similar purpose.

(GBP 1.0 = USD 1.306/EUR 1.165)

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