Standard content for Members only

To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.

If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.

Become a member

Start 14 day trial

Login Register

Greencoat UK Wind issues 300 million shares to cut debts

Renewable infrastructure fund Greencoat UK Wind has announced plans to issue 300 million shares over the next year in order to pay down some of its debts.

The firm owes around £225 million to creditors after it spent £280 million buying Stroupster Wind Farm in December and a 28.2 per cent stake in Clyde Wind Farm last month.

Greencoat said its portfolio – totalling 400MW of capacity across 18 wind farms – is now worth £850 million.

It means the company’s debts amount to 38 per cent of the gross value of its assets but the company is aiming bring that figure down to between 20 and 30 per cent. The shares will initially be offered at a price of 105p and sold up until 17 April 2017.

Company chairman Tim Ingram said: “This programme of capital raises announced today will enable the company both to pay down debt, and to take advantage of value-accretive growth opportunities whilst maintaining its very selective acquisition approach.”

In February, Greencoat reported strong returns of £48.3 million, which was “in line with budget”, despite lower-than-forecast power prices in 2015.

The group said its wind power investments had generated 799.3GWh of electricity, 8 per cent above budget, because of “high wind resource”.