Greencoat Renewables issuing up to 400m shares to fund pipeline

Renewable infrastructure investment company Greencoat Renewables announced a 12-month share issue programme of up to 400 million new shares on Monday, to fund its growing pipeline of opportunities in continental Europe and Ireland.

The AIM-traded firm launched an initial placing under the programme at a price of 111 euro cents per share, to institutional investors.

It said investors in the initial placing would be entitled to receive the third quarter dividend for the three months ended 30 September.

The company said it had multiple “attractive” near-term investment opportunities under consideration in both wind and solar assets in Ireland and continental Europe markets, with around 300MW under exclusivity across a mix of operating and forward sale opportunities located in Ireland, the Nordics and Spain, as well as more than 350MW of other pipeline opportunities.

Proceeds from the initial placing would provide the company with the flexibility to execute on assets under exclusivity, increase optionality around the assets at advanced stages of negotiation, and meet obligations under committed forward-sale investments, all while maintaining gearing within its target range of 40% to 60%, the board said.

The firm said it would publish its unaudited net asset value as at 30 September on or around 28 October, with the directors expecting it to be broadly in line with its value as at 30 June.

It said the 12-month share issue programme would, the board believed, provide the company with the financial flexibility to raise further equity as value-accretive investment opportunities continued to arise, and enable it to deliver effectively on its stated strategy.

Implementation of the programme required the approval of shareholders at an extraordinary general meeting to be held on 28 October.

The board said it believed that the programme was in the best interests of shareholders as a whole, and unanimously recommended that they voted in favour of the relevant resolutions at the meeting.

“Over the past year the business has built an excellent platform for expansion into the continent, with a very strong financial position, and long-term, trusted relationships,” said executive chairman Ronan Murphy.

“This share issuance will enable further value-accretive growth whilst maintaining leverage within the target range.”

“We look forward to continuing to deliver our proven model across the European market.”

At 0921 BST, shares in Greencoat Renewables were down 1.53% in London, at 113 euro cents.