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Greencoat UK Wind Announces Proposed Equity Capital Raise

23 September, 2014

Greencoat UK Wind Announces Proposed Equity Capital Raise

Greencoat UK Wind plc ("Greencoat UK Wind" or the "Company"), the leading UK premium listed renewable infrastructure fund invested solely in operational UK wind farms, today announces a proposed equity capital raise, in line with its stated strategy. The proposed target issue of £100 million will be used to refinance the Company's existing bank facility, which has been drawn down to fund Greencoat UK Wind's recent acquisitions.

 

Following its successful and substantially oversubscribed Initial Public Offering ("IPO") in March 2013, the Company has continued to deliver on its objective and strategy as set out in the Prospectus, which will be published shortly:

  • Paid a dividend equivalent to 6p per annum for 2013
  • Paid a dividend, increased in line with RPI, of 3.08p for the first half of 2014
  • Grown net asset value per ordinary share on a real basis (4.8% for the period since listing to 30 June 2014)
  • Acquired 145.0MW of additional wind generation assets bringing the Company's total generating capacity to 271.5MW and gross asset value to £582.9 million across 16 wind farms

At the same time, operational performance across the portfolio has been in line with management expectations.

 

Proposed Capital Raise

Proposed target capital raise of 93,457,944 new ordinary shares raising a targeted £100 million, by way of a proposed placing and offer for subscription (together, the "Issue") at an issue price of 107.0p per share. The closing share price as at 22 September 2014, being the last trading day prior to the announcement of the Company's intention to undertake the proposed fundraising, was 109.5p. The Company's unaudited NAV per share as at 30 June 2014 was 105.8p (102.7p ex-div)

  • The net proceeds from the Issue will be used to prepay the existing bank facility and for general corporate purposes
  • The Issue is not underwritten, and is conditional on, inter alia, shareholder approval at a general meeting of shareholders of the Company being convened for October 2014
  • RBC Europe Limited (trading as RBC Capital Markets) is acting as sole sponsor and bookrunner to the Company and Winterflood Securities Limited is lead manager to the Issue

 

Commenting on the announcement, Tim Ingram, non-executive Chairman of Greencoat UK Wind, said:

"In our first eighteen months since listing we have delivered on the opportunity we set out to investors; to pay a stable 6p dividend, increasing in line with inflation, and to grow the net asset value per ordinary share on a real basis. We have also reinvested nearly £19 million alongside acquisition debt facilities in ten new investments bringing our gross asset value to £582.9 million. 

"We have so far acquired 16 wind farms from five vendors. As planned, we believe our independence has been an important factor in enabling us to select assets which have enhanced returns and which we consider represent best value for shareholders.

"Looking at the market, we believe that the opportunities lying ahead for Greencoat UK Wind are very exciting. The asset pool is large and continues to be characterised by sellers looking to recycle capital into their development programmes. Greencoat UK Wind is very well placed to take advantage of this dynamic.

 

"This capital raise will pay down the acquisition facility allowing the Company to take advantage of these further value-accretive growth opportunities."