Greencoat UK Wind to issue up to 750m shares over 12 mo
The Bishopthorpe wind farm in Lincolnshire. Source: BayWa r.e. renewable energy GmbH
Renewable infrastructure fund Greencoat UK Wind Plc (LON:UKW) today announced a 12-month share issuance programme and said the initial tranche is taking place this month.
Under the programme, the fund may issue up to 750 million new shares. It will use the proceeds to repay debt and make more wind capacity investments.
“Following our investment in the Walney offshore wind farm, and anticipating our commitment to make wind farm investments over the next 18 months, the Share Issuance Programme will enable the Company to pay down debt and continue to capitalise on our strong pipeline of acquisition opportunities in the UK wind farm market,” said chairman Shonaid Jemmett-Page.
As announced on Tuesday, Greencoat is acquiring a 25.1% stake in the 367-MW Walney offshore wind farm from UK utility SSE Plc (LON:SSE). The total consideration amounted to GBP 350 million (USD 465m/EUR 393.5m).
The initial tranche of the share issuance programme includes an initial placing and an initial offer for subscription, both launching today. They are expected to close on September 28, unless the fund’s directors decide to bring forward or postpone the closing date.
The share issue price will be GBP 1.31, which is a discount of 4.7% to Greencoat’s closing share price on September 2, and a premium of 10.7% to the net asset value (NAV) reported as of June 30. All new shares issued in the tranche will be entitled to future dividends.