Founded in 2012, Greencoat UK Wind Plc is a renewable infrastructure fund that invests in operating the onshore and offshore UK wind farms to deliver its shareholders with a sustainable and transparent income stream. Its objective is to deliver investors with an annual dividend that rise in line with RPI inflation while protecting capital on a real basis by reinvesting excess cash flow though prudent use of portfolio leverage, in additional operating UK wind farm. It was the first UK-based renewable infrastructure fund listed on the main market of the London Stock Exchange as LON: UKW and it is a constituent of FTSE250 index.
The company has appointed Greencoat Capital LLP as its investment manager. The company invests in UK wind farms with capacity over 10MW and the investment in offshore wind farms should be no more than 40% of the gross asset value at acquisition. No wind farm project should have acquisition price higher than 30% of the gross asset value. The company will acquire the whole interest in a particular wind farm, usually held though special purpose vehicles. In case, it invests less than 100% of the equity share capital of the SPV wind farm, it will protect its shareholder rights via shareholders’ agreements and other transaction documents.
The company can only invest 15% of the gross asset value in any construction projects or associated debt instruments and construction projects, outside UK. By entering in PPAs that avoid fixing price of power sold for long-term it will retain exposure to UK power and for short term it may enter hedging contracts or PPAs that fix the price of electricity. Further, the company expects short-term investment financing and long-term debt to be between zero and 40% of the Gross Asset Value, with average total debt to be between 20% and 30% in long-term.
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