LONDON (ShareCast) - (Sharecast News) - Greencoat UK Wind on Tuesday said it was launching an discounted equity raising to help fund the £250m acquisition of a stake in the Burbo Bank Extension offshore wind farm in the UK.


New shares were being offered at 132p each, a 6.5% discount to Monday's closing price. Greencoat said was buying a 25% stake in the wind farm from AIP, in partnership with pension funds investing through Greencoat Renewable Income, a fund also managed by Greencoat Capital.

Greencoat UK Wind will acquire a net 15.7% stake in the wind farm, located in North West England.

The farm was commissioned in July 2017, comprised 32 Vestas turbines and has a grid capacity of 258 megawatts.

"The acquisition will be funded using the company's revolving credit facility, cashflow and the proceeds of a new equity raise launching today,' the company said.

It added that the proceeds from the share issue were expected to fund the acquisition and repay debt "and continue to capitalise on the strong pipeline of opportunities in the UK wind farm market, both onshore and offshore".

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