Renewables asset investor Greencoat Renewables PLC (LON: GRP) announced today that it had exceeded expectations with an impressive sum raised in its share placing.
The Company said it had managed to raise €125 million in a “materially oversubscribed placing”.
Conditional on shareholder approval at the Group’s EGM, 110,619,469 Placing Shares will be issued at a price of €1.13 per unit.
This will increase the total issued share capital of Greencoat Renewables to 630,619,469 Ordinary Shares. The placing shares will represent around 21% of the Group’s existing issued Ordinary Share capital prior to the initial placing.
In line with the Company’s strategy, the proceeds raised will be used to refinance the Group’s Revolving Credit Facility. This will allow the Company to make acquisitions while maintaining its current level of gearing, which currently stands at 48%, but are expecting to fall to 36% on a pro forma basis following receipt of the proceeds from the net placing.
Elsewhere in renewables news, Renewables Infrastructure Group (LON:TRIG) acquired a stake in Merkur Offshore wind, Tekmar Group plc (AIM: TGP) posts a record order book, Nokia Corporation (HEL: NOKIA) helps transform Finland’s national grid to support renewables and SIMEC Atlantis Energy (LON: SAE) made a series of operational announcements.
Greencoat Renewables comments
Rónán Murphy, Chairman of Greencoat Renewables, commented:
“I would like to take this opportunity to thank our shareholders for their continued support. The oversubscribed placing demonstrates their confidence in the business and will enable us to deliver on our strategy. We look forward to completing the fundraising at our EGM on 16th December and continuing to add value for our shareholders through the acquisition of value-accretive assets in Ireland and our target European countries.”
Following the update, the Company’s shares enjoyed a rally of 4.06% or 0.047p, to 1.20p per share 10/12/19 16:00 GMT. The Group’s p/e ratio stands at 0.08, their dividend yield is inviting at 5.00%.