Greencoat Renewables in share issuance to 'take advantage of market'
Renewable energy company Greencoat has launched a 12 month share issuance programme of up to 250 million new shares.
Ireland's first stock market-listed renewable energy firm intends to issue approximately 100 million shares at a price of €1.01 per share.
The share issuance is to provide the company with "with greater financial capacity to take advantage of an increasingly active secondary market for wind assets in Ireland," according to a statement from Greencoat today.
Proceeds from the share placing will be used to refinance Greencoat’s revolving credit facility, allowing it to make acquisitions whilst maintaining total gearing within the target range.
"We are very pleased with the progress made over the past twelve months, achieving the operational and strategic targets we laid out at IPO," Rónán Murphy, chairman of Greencoat Renewables, said.
"The secondary market for operating wind assets in Ireland continues to grow apace, with an increasing number of opportunities large and small. We believe Greencoat Renewables is uniquely well positioned to take advantage of this market opportunity."
Adjusting for the 1.5c second quarter dividend announced on July 6th, the stock is being issued at a 2.4pc discount to the most recent closing price, according to Davy analysts.
Following Greencoat’s announcement, Michael Mitchell, analyst at Davy Stockbrokers said that Davy was reiterating its 'outperform' rating in respect of Greencoat.