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November 3, 2021

Greencoat UK to acquire stake in Burbo Bank Extension offshore wind farm

The company plans to fund the deal through its revolving credit facility, cash flow and proceeds from an equity raise.

By Umesh Ellichipuram

UK-based investment company Greencoat UK Wind is set to acquire a 25% stake in the Burbo Bank Extension offshore wind farm from AIP Asset Management.

The company will acquire the stake in partnership with several pension funds that are investing through Greencoat Renewable Income, a fund managed by Greencoat Capital.

Under this deal, Greencoat UK will acquire a 15.7% stake in the offshore wind facility for £250m ($340m), which includes cash and working capital.

To fund the acquisition, the company plans to use its revolving credit facility, cash flow and proceeds from a recent equity raise.

The deal is expected to be completed by the end of this month.

Greencoat UK Wind chair Shonaid Jemmett-Page said: “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 more than 1.3GW.

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“This will be our second contract for differences (CFD) investment, complementing the investments we are making in merchant assets and will sit alongside our 38 return of capital (ROC) investments as part of a balanced portfolio.”

Located north of the Wirral in North-West England, Burbo Bank Extension is equipped with 32 wind turbines supplied by Vestas and has a 258MW grid capacity.

The offshore wind facility has been operational since 2017.

Greencoat UK has also announced an equity raise through an issue consisting of a placing, an open offer, an intermediaries offer, and an offer for subscription.

Proceeds from the issue will help the company fund the wind farm acquisition and repay amounts drawn under its facility agreement, including future investments in the Windy Rig, Glen Kyllachy and Twentyshilling wind farms.

Jemmett-Page added: “Anticipating our commitments over the next 18 months, the equity raise launched today will enable us to pay down debt and continue to capitalise on the strong pipeline of opportunities in the UK wind farm market, both onshore and offshore.”

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