Greencoat UK Wind on the rise as institutions clamour for renewables

Greencoat UK Wind PLC is the leading listed renewable infrastructure fund, invested in operating UK wind farms.

The fund is a constituent of the FTSE 250 and has a market capitalisation of approximately GBP2.5 billion.

Greencoat UK Wind PLC (LSE:UKW)‘s manager, Stephen Lilley, says the three themes of “ESG, inflation, and prices,” were behind the clamour for shares in its recent funding round.

The wind farm giant increased the size of the share issue to GBP450mln from GBP396mln due to the demand.

Speaking to Proactive, Lilley said having environmental, social, and corporate governance (ESG) is crucial for the business and investors are increasingly looking for ESG companies.

Greencoat UK Wind PLC (LSE:UKW) raised the size of its latest funding round to GBP450mln as demand for shares ‘significantly’ outstripped supply, the renewable energy group said.

Originally the FTSE 250 group aimed to raise GBP396mln but said it decided to issue a further GBP54mln in shares due to the high demand. “In taking this decision, the board has taken into account the drawn amount on the Company’s Facility Agreement of GBP350mln and the GBP400mln of investment commitments expected to be made by January 2022”, a statement said.

Greencoat UK Wind PLC (LSE:UKW) has agreed to acquire a 15.7% stake in the Burbo Bank Extension offshore wind farm from AIP for GBP250mln.

A number of pension funds investing through Greencoat Renewable Income, a fund managed by Greencoat Capital, are acquiring an additional 9.3% stake in Burbo Bank.

Greencoat UK Wind PLC‘s (LON:UKW) Stephen Lilley talks Proactive London through the acquisition of the Walney offshore wind farm. It’s located nine miles off the Cumbrian coast and has a capacity of 367Mw. Greencoat’s funding the purchase from its GBP400mln acquisition facility, which will push total borrowing up to GBP980mln or 35% of gross asset value. Lilley hints at further investments over the next 18 months as they continue to capitalise on a strong pipeline of acquisition opportunities in the UK wind farm market.