Greencoat UK (UKW) & Impax (IEM): 2 green investment fund stocks to buy

Highlights 

  • The Climate Investment Coalition plans to invest around US$ 130 billion of capital into clean energy and other climate investments by 2030.
  • It aims to invest in several climate-focused areas such as green bonds, listed and unlisted companies, green infrastructure and more.

There has been a flurry of investment deals announcements at the COP 26 climate conference as governments and the private sector aim to address the climate challenge sooner than previously stated.

A coalition of several pension funds from the UK, Nordic countries and others, called Climate Investment Coalition, recently committed to direct US$ 130 billion of capital into clean energy and other climate investments by 2030.

The coalition plans to include investments across several instruments such as equity investments in listed and unlisted companies, investments in the green energy infrastructure in both developed and emerging markets.

It also plans to invest in debt instruments such as green bonds, in environmentally friendly real estate and more.

The London Stock Exchange had launched the Green Economy Mark in 2019, which is awarded to companies or investment funds helping in supporting the UK towards the transition to a sustainable and low carbon economy.

Let us take a closer look at 2 FTSE 250 index listed green-focused closed-end investments fund stocks, which have been issued with LSE’s Green Economy Mark label:

  1. Greencoat UK Wind (LON: UKW)

FTSE 250 listed Greencoat UK Wind is a leading investment fund in the renewable infrastructure space. The fund mainly invests in the UK wind farm sector.

The group recently revealed its plans to acquire a 25 per cent stake in the 258 MW Burbo Bank Extension offshore wind farm located in UK’s seas.

The fund plans to invest in Burbo Bank via a consortium with several pension funds for a total cash consideration of around £250 million.

UKW will acquire a net 15.7 per cent stake in the offshore wind project. The acquisition is expected to be completed later this month, on 30 November.

The fund plans to have a share placement in order to fund the deal.

UKW share price and volume

(Image source: Refinitiv)

Greencoat’s shares ended at GBX 135.20, up by 0.75 per cent on 5 November. The FTSE 250 index closed at 23,596.79, up by 0.54 per cent.

The company has a market cap of £2,855.63 million and a one-year return of 2.89 per cent as of 5 November. And the year-to-date return stands at 0.75 per cent.

  1. Impax Environmental Markets PLC (LON: IEM)

Impax Environmental Markets is a UK based investment company that is focused on investors maximising their benefits from the expected growth in the environmental markets and resource efficiency space.

The group recently reported in its monthly factsheet that its cumulative net asset value (NAV) over 3 years was 75.3 per cent and over 5 years at 116.2 per cent as of 30 September.

The fund’s dividend yield stands at 0.44 per cent as of 30 September.

IEM share price and volume

(Image source: Refinitiv)

Impax’s shares ended at GBX 553.00, up by 0.18 per cent on 5 November. The close end investments sectoral index closed at 14,454.63, up by 0.26 per cent.

The company has a market cap of £1,637.28 million and a one-year return of 38.94 per cent as of 5 November. And the year-to-date return stands at 30.89 per cent.

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