Greencoat seeks €250m from Irish vehicle listing

The company has garnered an initial €105m from cornerstone investors and will also look to invest a significant portion outside of Ireland.

UK-based investment firm Greencoat Capital is looking to raise up to €250 million from the listing of its Ireland-focused Greencoat Renewables vehicle, just three months after launching.

The firm is seeking a dual listing, placing shares on both London’s Alternative Investment Market and Ireland’s Enterprise Securities Market at an issue price of €1 per share. It has a target IRR of between 7 and 8 percent.

Some €105 million has already been committed from Greencoat Renewables’ cornerstone investors. The €8 billion Ireland Strategic Investment Fund will purchase between 76 million to 80 million shares and Allied Irish Banks will subscribe to between 10 million and 25 million shares.

The pair financed the vehicle when it launched in March, buying two wind farms from Brookfield Renewable Ireland with a combined capacity of 137MW. Greencoat Renewables will continue to focus on Ireland’s onshore wind sector but also expects to integrate assets elsewhere in Europe after two years in countries such as Belgium, Finland, France, Germany and the Netherlands, with investments outside of Ireland capped at 40 percent of the gross asset value.

Solar and offshore wind investments will also be considered over time, again capped at the 40 percent gross asset value figure. Greencoat stated that once the gross asset value of the company exceeds €500 million, it will not consider investments more than 25 percent of this figure.

“The Irish renewable energy market, with Ireland’s abundant wind resource, offers a compelling opportunity for investors,” said Bertrand Gautier, partner at Greencoat Capital. “From our base in Ireland, we expect that Greencoat Renewables will become a leading euro-denominated renewables investment company and we are excited about the growth prospects for the business.”

Greencoat told Infrastructure Investor that the firm always intended to list the vehicle when it launched but preferred to first focus on the seed portfolio. It said the listing will attract further institutional capital into the Irish renewables market.

The move marks the first time a renewable energy infrastructure company will be listed on the Irish Stock Exchange. Greencoat Capital also manages London-listed Greencoat UK Wind, which owns a portfolio across the UK totalling 436.1MW. Greencoat Capital also last year launched an unlisted solar fund backed by the BBC Pension Scheme which has so far bought 108MW of UK solar assets.