Greencoat UK Wind plc (LON:UKW) today announced a new share issuance programme to pay down debt so that it can pursue further acquisitions.
The listed renewable infrastructure fund, managed by Greencoat Capital LLP, will issue up to 500 million shares over the next 12 months under the programme.
Chairman Tim Ingram said the move will allow the company to "continue to take advantage of the significant pool of assets currently available in the UK wind farm secondary market."
Greencoat UK Wind, which listed in 2013, has now created a portfolio with a net generating capacity of 617 MW across 24 UK wind farms. "Having grown the Company to the size it is today, we are better placed than ever to capitalise on the strong pipeline of investment opportunities available to us further to enhance returns for our shareholders," Ingram said.
The fund is launching an initial issue under the fundraising programme at GBP 1.17 (USD 1.56/EUR 1.33) per share. The final size of the initial sale will be unveiled on October 20. As part of it, the initial offer for subscription will close on October 17 and the initial placing on October 19. The issuance programme is subject to approval by shareholders at a meeting on October 18. Prospectus will be published next week.
After investments during 2017, the fund has borrowings of GBP 400 million under its term loan and revolving facilities and GBP 100 million under its long-term facility. The proceeds of the issuance programme will be used to pay down the former.