Greencoat UK Wind PLC (LON:UKW) has raised gross proceeds of £400mln cash from a share issue to reduce gearing and progress projects in its pipeline.
The UK wind farm investor’s placing and initial offer for subscription will see 305.34mln shares issues in what was said to have been an oversubscribed capital raise.
WATCH: Greencoat UK Wind's Stephen Lilley details new Walney acquisition
Proceeds will be primarily applied to prepay the FTSE 250 company’s debt, resulting in total borrowings being cut to £600mln, equivalent to roughly 21% of gross asset value.
Shonaid Jemmett-Page, chairman of the trust, said: “Our simple, low risk model continues to deliver and we look forward to maintaining our track record of dependable returns to shareholders.”
Stephen Lilley, of the investment manager Greencoat Capital, added: “Following our investment in Walney, a large scale and high load factor offshore wind farm, this equity capital raise will enable UKW to reduce gearing and continue to capitalise on the strong pipeline of attractive investments in the UK wind farm market.”