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28 September 2017
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Greencoat UK Wind announces new share issuance programme

Greencoat UK Wind Announces Launch of Initial Placing Under a New Share Issuance Programme

Greencoat UK Wind plc (the "Company" or "UKW"), the leading listed renewable infrastructure fund, today announces a new programme of share issuance (the "Share Issuance Programme") to be conducted over the next 12 months through a number of tranches. 

The proceeds of the Share Issuance Programme of up to 500 million new shares will be used to pay down the Company's Facility Agreement enabling the Company to pursue further attractive investment opportunities. Under the Share Issuance Programme, UKW will issue new ordinary shares by way of an initial placing and initial offer for subscription (together, the "Initial Issue"). The prospectus relating to the Share Issuance Programme is expected to be published in the week commencing 2 October 2017, with the final size of the Initial Issue to be announced on 20 October 2017.

Tim Ingram, Chairman of Greencoat UK Wind, said:

Our disciplined approach to making acquisitions has delivered significant value-accretive growth for the Company over the past year. The programme of capital raises announced today will enable the Company to pay down debt and continue to take advantage of the significant pool of assets currently available in the UK wind farm secondary market. Having grown the Company to the size it is today, we are better placed than ever to capitalise on the strong pipeline of investment opportunities available to us further to enhance returns for our shareholders.

Background to, and Reasons for, the Share Issuance Programme

Following its successful initial public offering in March 2013, the Company has continued to deliver on its objectives and strategy, achieving the following key milestones:

  • UKW has paid dividends of £131.3 million (26.5p per share)
  • Dividend inflated in line with RPI each year (6.49p target for 2017)
  • Grown Net Asset Value ("NAV") per ordinary share by c. 10.4% versus RPI inflation of 9.5% for the period since listing to 30 June 2017
  • Provided a Total Shareholder Return of 52.1% for the period since listing to 30 June 2017
  • Made 18 additional wind generation asset investments increasing the Company's total net generating capacity from 127MW to 617MW and Gross Asset Value to £1.3 billion across 24 wind farms
  • Generated over 3.3TWh of power for period since listing to 30 June 2017
  • Operational performance across the portfolio has been in line with management expectations

Following the acquisition of Langhope Rig, Bishopthorpe, North Hoyle, Slieve Divena and Corriegarth wind farms and further investment in the Clyde wind farms during 2017, UKW has outstanding borrowings of £400 million under its Facility Agreement (£100 million Term Loan and £300 million Revolving Facility) and £100 million under its Long Term Facility Agreement, equivalent to 38% of Gross Asset Value (total gearing limited to 40%).

The Board believes that the Share Issuance Programme will offer significant benefits for all Shareholders and the Company:

  • Proceeds will be used to reduce borrowings under the Company's Facility Agreement in line with the Company's long term gearing target of 20-30%
  • Expanded equity capital will improve liquidity in the trading of UKW's shares
  • Reduce UKW's ongoing charges ratio owing to economies of scale
  • As the Initial Issue (as defined below) is at a price above the NAV per share, the Initial Issue will be NAV per share enhancing

The Initial Issue

  • Under the Share Issuance Programme, subject to approval by Shareholders, UKW will issue new ordinary shares by way of an initial placing and initial offer for subscription (together, the "Initial Issue") at an issue price of 117p per share
  • The unaudited NAV per share for 30 September 2017 is expected to be announced on 3 October 2017 with the Share Issuance Programme prospectus expected to be published shortly thereafter
  • The net proceeds from the Initial Issue will be used towards repaying borrowings under the Company's Facility Agreement
  • The initial offer for subscription closes on 23 October 2017 and the initial placing closes on 25 October 2017

Share Issuance Programme

  • In conjunction with the Initial Issue, the Board intends to implement a Share Issuance Programme
  • Under the Share Issuance Programme, subject to approval by shareholders, UKW intends to issue up to 500 million new ordinary shares
  • The Share Issuance Programme is being implemented to raise additional capital in the 12 months following publication of the prospectus in order to take advantage of the strong pipeline of opportunities available to the Company

Notice of General Meeting

  • The Initial Issue and Share Issuance Programme are not underwritten, and are conditional on, inter alia, shareholder approval at a general meeting of shareholders of the Company on 18 October 2017
  • The Company is today publishing a circular to Shareholders and notice of general meeting in connection with the proposals for the issue of new ordinary shares pursuant to the Share Issuance Programme.
  • The notice of general meeting is being dispatched to all shareholders. An electronic copy of the notice of general meeting will also be available on the Company's website.
  • A copy of the Notice and Form of Proxy can be inspected at the National Storage Mechanism website.
  • A further announcement will be made upon publication of the Prospectus.
  • RBC Europe Limited (trading as RBC Capital Markets) is acting as sponsor and bookrunner to the Company and Kepler Partners LLP is acting as placing agent with regards to the Initial Issue.
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