The Board of Greencoat UK Wind PLC ("UKW") is pleased to
announce that it has entered into an agreement to acquire 49.9% of
Clyde Windfarm (Scotland) Limited ("Clyde") from SSE for a headline
consideration of £355 million, together with GMPF & LPFA
Infrastructure LLP ("GLIL"), the infrastructure investment joint
venture between Greater Manchester Pension Fund ("GMPF") and London
Pensions Fund Authority ("LPFA"). UKW will acquire 28.2% of Clyde
and GLIL will acquire 21.7%. SSE will continue to hold 50.1%.
Clyde is located in South Lanarkshire and consists of
the Clyde North, Clyde South and Clyde Central wind farms, with a
combined generating capacity of approximately 350 MW and a net load
factor of 33.0%. Clyde North consists of 47 Siemens 2.3 MW turbines
with a total capacity of 108 MW and is ROC accredited from August
2012. Clyde Central consists of 49 Siemens 2.3 MW turbines with a
total capacity of 113 MW and is ROC accredited from January 2012.
Clyde South consists of 56 Siemens 2.3 MW turbines with a total
capacity of 129 MW and is ROC accredited from July 2011. All were
developed by SSE and receive 1 ROC per MWh. SSE will continue to
operate the assets with Siemens providing turbine operation and
SSE is in the process of constructing Clyde
Extension, which will consist of 54 Siemens 3.2 MW turbines with a
total capacity of approximately 173 MW and an expected net load
factor of 37.8% and will receive 0.9 ROCs per MWh. SSE is providing
a construction wrap: once Clyde Extension is operational, UKW's and
GLIL's shareholding in Clyde will be diluted (with an implied Clyde
Extension value of £467 million subject to certain adjustments).
Under the Shareholders' Agreement, UKW and GLIL have a Right of
Tim Ingram, Chairman of UKW, commented: "We are
pleased to announce UKW's latest acquisition, which will deliver an
attractive investment return, in line with the existing portfolio.
We are delighted to extend our relationship with SSE and co-own
Clyde, one of the largest onshore wind farms in the UK."
Laurence Fumagalli of Greencoat Capital added: "There
remains an exciting pipeline of future acquisition opportunities
and we believe that our model positions us competitively in the
market to acquire operational assets and makes us an attractive
partner for utility vendors."
Paddy Dowdall, Assistant Executive Director, GMPF
said: "We are excited to be investing alongside Greencoat UK Wind
and SSE in this venture. This investment offers us attractive
returns, complements our growing renewable portfolio and continues
our commitment to investing directly in British
The acquisition, which is expected to complete on 18
March 2016, will be funded by a £165 million utilisation under
UKW's revolving credit facility, an increase of £25 million in
UKW's fixed-rate loan with the Commonwealth Bank of Australia, £5
million from UKW's cash resources, plus Clyde cash balances.
Following completion of the acquisition, at £325 million, UKW's
total outstanding debt is expected to be approximately 38% of Gross
Asset Value (leverage limit 40%).