Greencoat UK Wind Plc (LON:UKW) has secured GBP 450 million (USD 600.8m/EUR 536.1m) of gross proceeds in an oversubscribed equity raise, which will be used to fund its investment in the Burbo Bank Extension wind farm in UK waters.
The renewable infrastructure fund, which is managed by Greencoat Capital LLP, announced in early November it is investing GBP 250 million in the 258-MW offshore wind farm for a net interest of 15.7%. The deal is for a 25% stake in Burbo Bank Extension, which Greencoat UK Wind is acquiring in partnership with pension funds investing through Greencoat Renewable Income LP.
The capital raise will also help fund Greencoat UK Wind’s committed investments in the Windy Rig, Twentyshilling and Glen Kyllachy wind projects, which are currently being commissioned. “We continue to see a strong pipeline of attractive investment opportunities," said Stephen Lilley of Greencoat Capital.
Greencoat UK Wind said that as investor demand has exceeded the maximum issue size of GBP 396 million, it has decided to use part of its annual pre-emption disapplication authority to meet GBP 54 million of the excess demand.
Subject to shareholder approval on November 26, it will issue a total of about 340.9 million shares, including some 40.9 million under the tap issue.
(GBP 1 = USD 1.335/EUR 1.191)
Choose your newsletter by Renewables Now. Join for free!