Renewable infrastructure fund Greencoat UK Wind is to issue up to 500m shares over the next 12 months to finance new acquisitions and pay down debt.
The shares will be issued through several tranches, with the initial placing and offer for subscription launching today.
Subject to approval by shareholders, Greencoat UK Wind will issue new ordinary shares by way of the initial placing and initial offer for subscription at a price of £1.33 each.
The prospectus for the share issuance programme will be published soon, the company said.
Net proceeds from the initial tranche are expected to be used to pay back amounts owed under Greencoat UK Wind’s facility agreement.
Net proceeds from each subsequent tranche will be used to pay back amounts outstanding under the facility agreement or be used to invest in new acquisitions.
Chairman Tim Ingram said: “Following our investment in the high quality Stronelairg and Dunmaglass wind farms, and the imminent purchase of the Tom nan Clach wind farm, the share issuance programme launched today will enable the company to pay down debt and continue to capitalise on the strong pipeline of acquisition opportunities in the UK wind farm secondary market.”
Since its initial public offering in March 2013, Greencoat UK Wind has made 28 additional wind generation asset investments, increasing the company’s total net generating capacity from 127MW to 950MW and gross asset value (GAV) to £2.3bn across 34 operating wind farms.
Following the completion of the £452m investment in the Stronelairg and Dunmaglass wind farms announced on 28 March 2019, gearing is £794m, equivalent to 34% of GAV.