The acquisition is scheduled to complete on 30 November 2021. The acquisition will be partly funded by a share issue.
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.
Burbo Bank Extension is located four miles north of the Wirral in North West England. It was commissioned in July 2017, comprises 32 Vestas V164 8.13 megawatt (MW) turbines and has a grid capacity of 258MW.
Burbo Bank Extension has a load factor of 43.8% and benefits from a contract for difference (CFD) priced at £176.57 per megawatt-hour (MWh) until 31 March 2032.
Greencoat said the acquisition will be funded using the company’s revolving credit facility, cash flow and the proceeds of a new equity issue, details of which are below.
The renewable infrastructure fund is planning to issue shares at 132p that will be available through a placing, an open offer to existing shareholders on the basis of 1 new share for every 13 currently held and an offer for subscription that is open to the public.
Shares in Greencoat closed at 141.2p (mid-market price) last night.
“We are delighted to announce our investment in Burbo Bank Extension, a high load factor, CFD accredited offshore wind farm. This transaction, once completed, will add another high-quality asset to our portfolio which will stand at 41 wind farm investments, with a generating capacity of over 1.3GW [gigawatts],” said Shonaid Jemmett-Page, the chair of the company.
“This will be our second CFD investment, complementing the investments we are making into merchant assets and will sit alongside our 38 ROC [renewable obligations certificate] investments as part of a balanced portfolio,” she said.
“Anticipating our commitments over the next 18 months, the equity raise launched today will enable the company to pay down debt and continue to capitalise on the strong pipeline of opportunities in the UK wind farm market, both onshore and offshore.
“Given the size and scale the company has attained over recent years, UKW is well placed to make value-accretive acquisitions and further enhance returns for our shareholders,” she concluded.
Read More: Greencoat UK Wind PLC acquires stake in wind farm off the Wirral coast