3rd Sep 2020 10:16
(Alliance News) - Greencoat UK Wind PLC said Thursday it has launched a 12-month share issuance programme, with an initial tranche being offered starting Thursday.
Under the programme, Greencoat may issue up to a maximum of 750 million new shares over the next 12 months, but will immediately open an initial placing at an issue price of 131 pence each.
Shares in the renewable infrastructure fund were down 4.1% in London in mid-morning trade at 135.60 pence each.
The total number of shares offered in the initial tranche was not specified.
The net proceeds from the initial tranche, the company said, are expected to be used to repay amounts drawn under the company's facility agreement.
The net proceeds from each subsequent tranche will be used to help repay its facility agreement and may be used to make further investments.
Greencoat said the share programme is expected to be NAV accretive to existing shareholders.
Chair Shonaid Jemmett-Page said: "Following our investment in the Walney offshore wind farm, and anticipating our commitment to make wind farm investments over the next 18 months, the share issuance programme will enable the company to pay down debt and continue to capitalise on our strong pipeline of acquisition opportunities in the UK wind farm market.
"Given the size and scale the company has attained over recent years, UKW is well placed to make value-accretive acquisitions and further enhance returns for our shareholders."
By Paul McGowan; [email protected]
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