Greencoat raises £125m to pay down debt

Listed renewable energy fund manager Greencoat UK Wind collected 25% more than its £100m target.

Greencoat UK Wind, the listed renewable energy investor, has garnered £125 million (€159 million; $201 million) in gross proceeds from a capital raising exercise.

In line with its previously stated intentions, Greencoat will use the proceeds to pay down an acquisition debt facility, leaving it with total gearing of approximately 20 percent.

When the firm last month announced the placing and issue for subscription, it set a target of £100 million.

“We are delighted with the strong support from existing shareholders and new institutions and pleased to be able to accommodate the additional demand,” said Tim Ingram, chairman of Greencoat, in a statement.

Since Greencoat’s oversubscribed initial public offering on the London Stock Exchange in March 2013, in which it raised £260 million, the firm has added 145 megawatts (MW) of additional wind generation assets to its initial base, bringing the total generating capacity to 271.5MW.

The firm’s net asset value per ordinary share grew on a real basis by 4.8 percent between listing and 30 June 2014.

Greencoat’s most recent deals came in July when it acquired Kildrummy Wind Farm in Scotland for £43.3 million and Maerdy Wind Farm in South Wales for £52.9 million.

The firm had previously come to market to refinance an existing bank facility towards the end of last year, when it raised £83 million compared with a maximum target of £135 million.

Last week, fellow listed renewables investor Foresight Solar raised £60.1 million via an initial placing and offer having announced an intention to raise up to £100 million.