Greencoat sets sights on £100m

Listed renewable infrastructure fund Greencoat UK Wind is aiming to use issue proceeds to refinance an existing bank facility.

Greencoat UK Wind (Greencoat), a renewable infrastructure fund which focuses solely on operational UK wind farms, has announced plans to raise £100 million (€128 million; $162 million).

The proposed equity capital raising would be used to refinance an existing bank facility, which has been drawn down to finance recent acquisitions made by Greencoat.

The proposed placing and issue for subscription would involve 93,457,944 new ordinary shares at an issue price of 107p per share. The issue is conditional upon approval at a general meeting of company shareholders in October.

RBC Europe Limited has been appointed sole sponsor and bookrunner for the issue and Winterflood Securities as lead manager.

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 UK renewable investor Foresight Solar Fund also announced plans to raise £100 million through an initial placing and offer on the London Stock Exchange.