Greencoat Renewables to buy Kerry wind farm
Greencoat, Ireland's first stock market-listed renewable energy firm, is to buy Dromadda More, a 36MW wind farm from Impax Asset Management for a total consideration of €88.4m.
In addition Greencoat will put in place a new €250m revolving credit facility (RCF) with a syndicate of five banks - AIB, BNP Paribas, Commerzbank, Royal Bank of Canada and Santander.
The RCF will be used to re-finance existing project finance debt of €71m, as well as fund new acquisitions, including the Dromadda More wind farm.
Once the re-financing of existing debt and the Dromadda More acquisition has been completed, the RCF will provide capacity for a further €95m of acquisitions.
"Dromadda More represents the first acquisition for Greencoat since its IPO and underpins the growth opportunity that we believe exists in the Irish onshore wind market. It is an excellent addition to our seed portfolio, and value-accretive to our shareholders," Paul O’Donnell, partner at Greencoat Capital, the investment manager, said.
Dromadda More consists of 11 Vestas V112 turbines. The wind farm is currently being energised and is expected to be formally commissioned in March 2018 at which point the acquisition will complete.
Last month Greencoat reported operating profits of €9.8m in seven months to 30 September. Pre-tax losses at the company were €3.87m due to financial expenses of €13.7m.
During the seven month period the company’s operating cash flow was €8.9m.
In July the company said that it expects to be looking abroad for additional acquisitions within two years, and has cited Germany, Finland, Belgium, the Netherlands and France as providing expansion opportunities.