Greencoat lists after £260m fundraise

The Greencoat UK Wind fund joined the Official List of the London Stock Exchange yesterday having hit its maximum fundraising target last week.


Greencoat UK Wind, a fund established to invest in UK wind farms, has joined the Official List of the London Stock Exchange having last week raised gross proceeds of £260 million (€308 million; $394 million) from a placing of 260 million shares at £1 each.

Greencoat announced towards the beginning of February that it was aiming to raise a minimum of £205 million from the listing. In the end, it exercised an option to increase the size of the issue by a maximum of a further £55 million.

The proceeds will be used to acquire a seed portfolio of operational UK wind farms from German utility RWE and UK utility SSE. The interests in six onshore and offshore wind farms comprise a net capacity of 126.5 megawatts. The assets will continue to be run on a day-to-day basis by RWE and SSE.

In a statement, Greencoat said SSE’s investment had been scaled back to 10 million ordinary shares (£10 million) due to “significant oversubscription from investors” and that there had been “lesser scale-backs for other investors”. When announcing the listing, Greencoat said that SSE had subscribed for up to 43 million shares. The UK government’s Department for Business, Innovation and Skills subscribed for 50 million shares.

“The strong demand highlights the attractiveness of Greencoat UK Wind’s target 6 percent dividend yield emanating from expected long-term, predictable returns,” said Tim Ingram, non-executive chairman, in a statement.   

He added: “The listing provides us with the platform to build upon the initial portfolio of operational wind farms, taking advantage of the underlying growth we expect in the wind farm market to deliver investors a sustainable and growing return on their investment.”

The Greencoat investment management team is led by Stephen Lilley and Laurence Fumagalli, who were both formerly senior executives at London-based manager and advisor Climate Change Capital.