Greencoat UK Wind PLC: Announcement of Proposed Equity Capital Raise

15 November, 2013



Greencoat UK Wind Announces Proposed Equity Capital Raise


Greencoat UK Wind plc ("UK Wind" or the "Company"), the listed infrastructure fund invested solely in operational UK wind farms, today announces a proposed equity capital raise, in line with its stated strategy. The proposed issue may raise up to a maximum of £135 million and will be used to refinance the Company's existing bank facility, which has been drawn down to fund UK Wind's recent acquisitions.

Following its successful and substantially oversubscribed Initial Public Offering ("IPO") in March 2013, the Company has delivered on its strategy as set out in the Prospectus:

  • Paid a dividend equivalent to 6p per annum (1.5p interim dividend declared on 19 August 2013)
  • Grown NAV in real terms
  • Built out an expert team at management and board level
  • Acquired 57.5MW of additional wind generation assets bringing the Company's total generating capacity to 184.0MW

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

Proposed Capital Raise

  • Proposed capital raise of a maximum of 131,707,318 new ordinary shares raising up to a maximum of £135 million, by way of a proposed placing, offer for subscription and open offer (together, the "Issue") at an issue price of 102.5p per share

- The closing share price as at 14 November 2013, being the last trading day prior to the announcement of the Company's intention to undertake the proposed fundraising, was 104.0p
- The volume weighted average price since listing and over the last three months has been 105.5p and 104.7p, respectively
- The Company's unaudited NAV per share as at 30 September 2013 was 101.4p

  • Under the terms of the open offer, existing shareholders are entitled to subscribe pro rata to their holdings on the basis of 1 new share for every 2 existing ordinary shares held at the close of business on 14 November 2013, together with the entitlement to apply for additional new shares under an excess application facility
  • The net proceeds from the Issue will be used to repay part or all of the existing bank facility, drawn down to £130.0 million to fund the acquisitions of the additional assets, with any excess after the repayment of all such third party debt to be used 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 December 2013
  • RBC Europe Limited (trading as RBC Capital Markets) is acting as sole sponsor to the Company and joint global coordinator, Barclays Bank PLC is joint global coordinator and Winterflood Securities Limited is co-lead manager to the Issue

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

"We came to the market earlier this year in our IPO with a clear, transparent, independent and high quality proposition and since listing we have delivered on the commitments we set out. We have paid our first dividend, added four additional onshore wind assets to our portfolio, grown NAV and strengthened the Investment Manager's team and the Board by recruiting seasoned experts across operations and asset ownership."

"We believe that the opportunities lying ahead for UK Wind are very exciting. The Company aims to provide investors with long-term, predictable returns and enables wind farm owners to reinvest the capital into their development programmes. The capital raise will pay down the acquisition facility allowing the Company to take advantage of these further value-accretive growth opportunities."



Key UK Wind Highlights

  • UK Wind is a premium listed infrastructure fund:fully invested solely in operating UK wind farms; currently invested in 10 assets, with net generating capacity of 184.0MW
  • IPO commitments delivered:since listing in March, UK Wind has added strength and depth to its team, grown NAV, paid its first dividend (6p per share pro-rated from listing to 30 June 2013) and added four assets to the portfolio
  • Predictable and supportive regulation: the Company's portfolio benefits from strong UK Government regulatory support for operating renewable energy assets, including 'grandfathering' of the support regime for existing assets through the recent Electricity Market Reform process
  • Experienced management team & Board:  an experienced team of senior professionals, overseen by a strong and experienced independent board with expertise across the wind and investment industries
  • A strong pipeline of future opportunities:UK Wind has identified an acquisition pipeline of over 400MW of operating UK wind farm investments and is actively engaged in due diligence on a number of potential targets
  • Advantageous structure:our independent model, with no leverage at the asset level, positions UK Wind well as a partner to utility and other vendors