Greencoat UK Wind proposes to raise £50m through placing to institutions

Greencoat UK Wind proposes to raise £50m. Greencoat UK Wind has announced that it intends to raise up to £50m through a placing of its ordinary shares by way of a tap issue to institutional investors. Tim Ingram, Chairman of the company, has said that they are currently working towards a particular acquisition and that it is expected that the proceeds of the placing would be used to part-fund this investment within ten days of the placing closing. In the interim, the proceeds would be used to reduce the company’s net bank borrowings.

The company says that issue price of 107.5p is a discount of 3.8% to the closing share price and a premium of 4.4% to the last reported NAV (ex-dividend) and is expected to be accretive to the net asset value per share of the Company, after costs. The book build for the placing is expected to close at 4pm on Tuesday, 24 November 2015.

About Greencoat UK Wind

Greencoat UK Wind invests in operating UK wind farms to provide shareholders with a sustainable and transparent income stream through an annual dividend on the issue price of 100p (6.16p target for 2014). Given the nature of the Company’s income streams, the Board intends to increase the dividend in line with Retail Price Index (RPI) inflation. The company also aims to preserve capital on a real basis by reinvesting excess cashflow in additional operating UK wind farms and through prudent use of portfolio leverage. Greencoat UK Wind will invest in wind farm projects predominantly with a capacity of over 10 MW. The substantial majority of the portfolio will be operating UK wind farm projects.

Greencoat UK Wind proposes to raise £50m through placing to institutions : UKW