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Greencoat UK Wind PLC (UKW), together with other funds managed by Schroders Greencoat LLP, agreed on 24 July 2023 to acquire a 25% stake in the London Array offshore wind farm from Orsted for a total consideration of £717m. UKW's total investment is expected to be £444m, comprising a £394m equity investment for a 13.7% net stake and a £50m loan investment, with completion scheduled for 31 July 2023. Separately, on June 29-30, 2023, UKW utilised £640m in new term loan commitments, prepaid £150m of term loans maturing in November/December 2023, and £200m drawn under its Revolving Credit Facility, reporting £499m in cash balances and zero drawn under the RCF as of June 30, 2023.
| Date | 24 Jul 2023 |
| Time | 07:00:04 |
| Category | Acquisitions and alliances |
| ID | 8744G |
24 July 2023
GREENCOAT UK WIND PLC
Investment in London Array offshore wind farm
Greencoat UK Wind PLC (the "Company", or "UKW") is pleased to announce that, together with other funds managed by Schroders Greencoat LLP, it has agreed to acquire a 25% stake in London Array offshore wind farm from Orsted. The total consideration for the 25% stake (from UKW and other funds) is £717m.
London Array was commissioned in May 2013 and has a total capacity of 630MW, comprising 175 Siemens 3.6MW turbines (as at Rhyl Flats and Walney). Other owners are RWE (30%), CDPQ (25%) and Masdar (20%). The wind farm is operated by RWE and earns 2 ROCs per MWh.
On 29 June 2023, the Company utilised £640m of new term loan commitments from new and existing lenders and on 30 June 2023, prepaid £150m of term loans maturing in November and December 2023 together with £200m drawn under its Revolving Credit Facility ("RCF").
Group cash balances as at 30 June 2023 were £499m with zero drawn under the RCF.
The London Array investment is scheduled to complete on 31 July 2023 and UKW's total investment is expected to be £444m, comprising equity investment of £394m (13.7% net stake) and £50m loan investment.
The Company looks forward to presenting its half year results on 27 July 2023.
Lucinda Riches, Chairman of UKW, commented:
"We are delighted to invest in London Array. The transaction was originated and negotiated on a bilateral basis and reflects the Company's ability to continue to generate significant shareholder value through selective off-market investments."
For further information, please contact:
Greencoat UK Wind PLC 020 7832 9425
Stephen Lilley
Laurence Fumagalli
Headland Consultancy 020 3805 4822
Stephen Malthouse
Rob Walker
Charlie Twigg
Notes to Editors:
Greencoat UK Wind PLC is the leading listed renewable infrastructure fund, invested in 46 operating UK wind farms (not including London Array) with net generating capacity of 1,652MW. The Company's aim is to provide investors with an annual dividend that increases in line with RPI inflation (8.76p for 2023) while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cash flow.
UKW provides investors with the opportunity to participate directly in the ownership of UK wind farms, so increasing the resources and capital dedicated to the deployment of renewable energy and the reduction of greenhouse gas emissions.
UKW is managed by an experienced team at Schroders Greencoat LLP, a leading European renewable investment manager with £10 billion of assets under management. UKW is governed by a strong and experienced independent board.
UKW is incorporated in England and Wales and is a UK Investment Trust.
For more information about UKW, please visit www.greencoat-ukwind.com
For more information about Schroders Greencoat LLP, please visit www.schrodersgreencoat.com