Greencoat, a venture capital firm founded by Ireland-based utility ESB, plans to raise £205m ($300m) by floating a wind-focused fund on the London Stock Exchange.
Greencoat UK Wind said it had the option to increase the size of the flotation by up to £55m and would be fully invested from launch as it has signed agreements to acquire a seed portfolio of operational UK wind farms from two energy utilities: RWE and SSE.
As well as contributing part of the seed portfolio, SSE has committed to subscribe for up to 43 million ordinary shares. The other cornerstone investor is the UK’s Department for Business, Innovation and Skills.
Stephen Lilley, partner of Greencoat Capital, said: “Operating wind farms should make attractive investment assets, particularly for investors seeking long-term, predictable returns. Greencoat UK Wind represents the first opportunity to invest into a listed infrastructure fund, fully invested in operating UK wind farms.”
Tim Ingram, non-executive chairman for Greencoat UK Wind, added: “With an anticipated initial dividend yield of 6%, limited planned gearing, and investment only in proven operating wind farms, Greencoat UK Wind offers a very attractive opportunity for investors seeking a sustainable and growing return on their investment.”