Greencoat UK Wind announces £100m capital raising

Greencoat UK Wind plc has announces a proposed £100 million (US$164 million) equity capital raise, in line with its 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.

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 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 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 is acting as sole sponsor and bookrunner to the company and Winterflood Securities Limited is lead manager to the issue.

 Tim Ingram, non-executive Chairman of Greencoat UK Wind, commented:

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.