Greencoat UK Wind has launched a new share issue programme to pay down debt and finance its pipeline of acquisition opportunities.
The programme will be conducted over the next 12 months through several tranches, the first of which launched on 3 September.
Under the share issuance programme, Greencoat UK Wind will issue up to a maximum of 750 million new ordinary shares over the next 12 months.
The net proceeds from the initial tranche will be used to repay amounts drawn under the company’s facility agreement, Greencoat UK Wind said.
The initial tranche is expected to close on 28 September 2020.
The net proceeds from each subsequent tranche under the programme will be used to repay amounts drawn under the facility agreement as well as be used for further investments.
Greencoat UK Wind chairman Shonaid Jemmett-Page said: “Following our investment in the Walney offshore wind farm, and anticipating our commitment to make wind farm investments over the next 18 months, the Share Issuance Programme will enable the company to pay down debt and continue to capitalise on our strong pipeline of acquisition opportunities in the UK wind farm market.
“Given the size and scale the company has attained over recent years, UKW is well placed to make value-accretive acquisitions and further enhance returns for our shareholders.”
Following its initial public offering in March 2013, Greencoat UK Wind ha acquired an additional 31 wind generation asset investments increasing the company’s total net generating capacity from 127MW to 1090MW and gross asset value (GAV) to £2.8bn across 37 operating wind farms.
Following the completion of the £350m investment in the Walney offshore wind farm announced on 1 September 2020, gearing is £980m, equivalent to approximately 35% of GAV.