Greencoat Renewables targets EUR100m with launch of initial placing – Greencoat Renewables (GRP), the Ireland-focused renewable infrastructure company, is looking to raise approximately EUR100m through an initial placing to provide the company with greater financial capacity to continue to take advantage of an active secondary market for wind assets in Ireland and to pursue identified opportunities in targeted European markets.
To this end, GRP has has announced a 12-month share issuance programme of up to 350m new shares in the capital of the company in a number of tranches. It intends to initially issue approximately 88m placing shares at a price of €1.13 per share.
The proceeds of the initial placing will be used to refinance the company’s revolving credit facility, allowing the company to make acquisitions while maintaining total gearing (currently 47%) within the target range.
Ronan Murphy, non-executive chairman of GRP, said: “The secondary wind market in Ireland continues to offer considerable value for Greencoat Renewables. We are very pleased with the progress made, both in acquiring value-accretive generational capacity from a wide range of sellers, and in operating those assets effectively. The pipeline for further acquisitions in Ireland remains strong, and we are evaluating attractive opportunities elsewhere in Europe. We thank our shareholders for their continued support.”
Irish market and GRP’s pipeline
Irish Market Background
GRP says Ireland remains an attractive location for investment in wind assets, with a reliable wind resource and robust regulatory regime underpinned by REFIT 2 and the forthcoming replacement announced for 2020 RESS. The estimated renewable capacity for onshore wind in Ireland is expected to increase from 4.5GW in 2020 to 8.2GW in 2030 according to Ireland’s climate action plan.
Strength of Acquisition Pipeline
The company says it has an attractive pipeline of opportunities to acquire wind farms in Ireland and is continuing to evaluate investment opportunities in other targeted EU jurisdictions.
The Irish secondary market for wind assets remains very active, with over 4.3GW of assets on schedule to be operational by 2020. GRP says it is very well placed to transact across the market having acquired 12 windfarms since admission and having acquired a portfolio of 451MW.
The trust is also building a pipeline of opportunities in target European markets (specifically Belgium, Finland, France, Germany and the Netherlands) which provide an opportunity for further geographic diversification in the short and medium term.
GRP: Greencoat Renewables targets EUR100m with launch of initial placing