Greencoat UK Wind (UKW) has bought the remaining 50% interest in Braes of Doune wind farm from funds managed by the infrastructure team of the international business of Federated Hermes for a sum of £48.1m.
UKW also agrees deal to buy 49.4% Kype Muir Extension wind farm for £51.4m
Braes of Doune is located in Stirlingshire, Scotland and comprises 36 Vestas V80 2MW turbines, with a total capacity of 72MW. The wind farm was commissioned in June 2007 and receives 1 ROC per MWh. UKW now owns 100% of the wind farm, having acquired its original 50% stake at IPO in March 2013.
UKW also announced that it has entered into an agreement with Banks Renewables to buy a 49.9% interest in Kype Muir Extension wind farm for £51.4m, to be paid once the wind farm is fully operational (the announcement notes that the target is Q4 2022). UKW will also provide construction finance of up to £47m, with the first utilisation expected in July 2021.
Kype Muir Extension is located in South Lanarkshire, Scotland and will comprise 4 Nordex 3.6MW turbines plus 11 Nordex 4.8MW turbines, with a total capacity of 67.2MW. The wind farm is subsidy-free and will benefit from a 15 year fixed power price agreement with a utility.
UKW’s announcement went on to note that “following its recently completed share placing, raising gross issue proceeds of £198m, and following its acquisition of the incremental interest in Braes of Doune, the company intends to repay £160m of its revolving credit facility (RCF), reducing borrowings under the RCF from £400m to £240m. Together with £700m of term debt, total borrowings will be £940m, equating to 28% of Gross Asset Value.”
UKW: Greencoat UK Wind announces two deals with a combined valued of £99.5m