Greencoat Renewables, a renewable infrastructure company, will raise funds through a share placement to pursue mergers and acquisitions.
Under its existing 400 million share issue programme, which began in October, the shares will have a placement price of €1.12. The pricing reflects a 6.7% reduction to the Euronext Dublin closing price per ordinary share of €1.20 on March 18.
It’s a 6.6% premium to the previous stated net asset value of 105.1 cents per ordinary share as of December 31st.
The firm claims to have “multiple attractive near-term investment opportunities under consideration in Ireland and continental European markets”.
“Proceeds from the placing will provide the company with the flexibility to execute on assets under exclusivity and meet obligations under committed forward sale investments, all while maintaining gearing (currently 43 per cent) within the company’s target range of 40-60 per cent,” it said.
Greencoat Renewables’ non-executive chairman, Ronan Murphy, said: “The growth and strategic diversification we have achieved in the business reflects our market-leading position in the Irish market and our strong relationships and expanding footprint across continental Europe.”
“Since the launch of the current share issuance programme, we have acquired our first asset in Sweden and agreed our first forward-sale transaction in Spain.”
“We would like to thank our shareholders for their continued support, as we consistently deliver stable returns and support Europe’s transition to a low-carbon economy.”