Greencoat UK Wind unveils plans to raise funds for acquisitions

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Greencoat UK Wind PLC (LON:UKW) said it is planning to raise up to £198mln through a share placing to fund what it said is a “strong pipeline of acquisition opportunities”.

The FTSE 250 renewable infrastructure fund said it intends to place up to around 150.8mln new shares at a price of 131p each, a 2.1% discount to its closing price on Thursday, and expects the fundraising to be accretive to its net asset value per share.

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The placing is to be launched immediately by way of an accelerated bookbuilding process to qualifying new and existing investors.

Greencoat said the proceeds of the placing will be used to repay or reduce borrowings under its revolving credit facility and allow it fund its acquisition pipeline, which included an acquisition in the near term and £162mln of previously announced committed purchases over the next 12 months.

The firm added that following the completion of the near-term acquisition, and assuming that the maximum amount has been raised under the placing, it expects to have outstanding gearing of 28% of gross asset value, of which £700mln is fixed rate term debt.

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