Greencoat Renewables plans share placing to fund new investments

Erstrask South Wind Farm in Sweden. Image by Greencoat Renewables

March 21 (Renewables Now) - Irish infrastructure investment firm Greencoat Renewables Plc (LON:GRP) plans to raise funds under its existing 400-million share issuance programme to pursue investment in assets across Europe.

The company said on Monday that it has several attractive opportunities under consideration in Ireland and other European markets, including around 380 MW under exclusivity across a mix of operating and forward sale opportunities located in Sweden, France, Spain and a new Northern Europe market.

The opportunity in the new Northern European market, if realised, would represent an acquisition of a 50% stake in “a large operating offshore wind farm”, Greencoat said.

The shares under the issuance programme that Greencoat launched in October will have a placing price of EUR 1.12 (USD 1.236). The price represents a 6.7% discount to the closing price per ordinary share of EUR 1.20 on Euronext Dublin on March 18, and a premium of 6.6% to the last reported net asset value (NAV) per share as at December 31 2021.

Funds from the placing will be used to partly pay down the revolving credit facility, which is currently drawn by EUR 75.7 million, to provide Greencoat with the flexibility to execute on assets under exclusivity and to meet its obligations under committed forward sale investment, all while maintaining gearing - 43% at present - within the company’s target range of 40% to 60%, the firm said.

The final number of placing shares will be determined at the close of the bookbuilding process, the timing of which is left to the discretion of Greencoat and the joint global co-coordinators.

Since launching the share issuance programme, Greencoat issued around 149 million ordinary share, acquired its first asset in Sweden and agreed its first forward-sale transaction in Spain, it said.

(EUR 1.0 = USD 1.104)

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Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.

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