Greencoat UK Wind raises maximum £260m in IPO

INFRASTRUCTURE fund Greencoat UK Wind this morning said it had raised the maximum £260m ahead of its London listing later this month.

Greencoat UK Wind placed 260m shares at a price of 100p, raising gross proceeds of £260m. It had previously said it hoped to raise anything from £205m.

The proceeds will be used to acquire six wind farms from RWE and SSE, who will manage the day-to-day operations.

As a result of strong demand, SSE will scale back its investment to 10m shares, and the Department for Business, Innovation and Skills has subscribed for 50m shares.

“The strong demand highlights the attractiveness of Greencoat UK Wind's target 6 per cent dividend yield emanating from expected long-term, predictable returns,” Tim Ingram, non-executive chairman of Greencoat UK Wind said today.

“The listing provides us with the platform to build upon the initial portfolio of operational wind farms, taking advantage of the underlying growth we expect in the wind farm market to deliver investors a sustainable and growing return on their investment.”

Greencoat will begin trading on the London Stock Exchange next week.

RBC Capital Markets acted as the sole global coordinator, sponsor and joint bookrunner. Barclays acted as the joint bookrunner and Winterflood Securities was the co-lead manager.