REG - Greencoat Renewables - Sale of a portfolio of Irish assets for €156m

Greencoat RenewablesAnnouncement

13/05/2025 07:02

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RNS Number : 4187I  Greencoat Renewables PLC  13 May 2025

 

 

 

 

 

 

Sale of a portfolio of Irish assets for €156m

 

·    Agreement to sell portfolio of 6 Irish onshore assets for total
proceeds of

€156m, with a further transaction in exclusivity.

·    Disposal strategy generating over €200m of proceeds over the past 6
months,

whilst optimising the portfolio's contracted visibility.

·    Irish disposal proceeds will be allocated to the Revolving Credit
Facility

('RCF') reducing proforma gearing to c.51%.

 

Dublin, London | 13 May 2025:

Greencoat Renewables PLC ('Greencoat Renewables' or the 'Company') is pleased
to announce an agreement to sell a portfolio of six Irish onshore wind assets,
totalling 115.7MW in net capacity, for an up-front consideration of €139m
and €17m in non-contingent deferred consideration over 2026 and 2027. The
NAV accretive disposal is expected to close in June 2025.

 

Capital Allocation Strategy

The proceeds from the transaction will be allocated to the repayment of the
RCF and will substantially reduce the drawn balance from the €201m reported
at Q1 2025. Gearing levels will be reduced from 54% reported at Q1 2025 to
c.51% on a proforma basis. The Company continues to target a reduction in
gearing over the medium term to a level below 50%.

 

The disposed portfolio comprises 100% of five assets (65.7MW) and a 50% stake
in one of the larger assets in Greencoat Renewables' portfolio. Post disposal,
the Company's five year look forward contracted cash flow mix will increase by
2pps.

 

The purchasing entity is HitecVision and Greencoat Renewables will work
alongside HitecVision and its newly created platform company to assess future
value creation opportunities at the jointly owned wind farm.

 

Portfolio Management Strategy

The Irish disposal aligns with the Company's active portfolio management
strategy that aims to maintain prudent gearing and a high level of contracted
revenues through a combination of asset sales, the creation of new PPAs, and
reinvestment in due course. It also underpins the opportunity for long-term
value creation on older assets, including the optionality around hybridisation
and repowering.

 

The disposal announced today builds on the disposal of the Kokkoneva wind farm
in Finland that the Company announced in November 2024. The Company has
therefore raised in excess of €200m from asset sales across 7 assets in the
past six months. The combination of these disposals increases our capital
allocation options for the future.

 

The Company continues to explore further disposals and is in advanced
negotiations over the sale of a significant minority stake in its 50MW Andella
wind farm in Spain. Any proceeds from this transaction will also be allocated
to the repayment of the Company's RCF.

 

Earlier this month the Company announced further success in its corporate PPA
contracting strategy with the signing of a second agreement with Keppel DC
REIT to supply power to two data centres in Dublin for ten years, and this
contract is included in the disposed portfolio. In total the company has now
entered into six PPAs since it launched its re-contracting strategy
representing c.20% of its 5-year merchant volumes.

 

Paul O'Donnell, Partner, Schroders Greencoat LLP, commented:

"This transaction reflects the disciplined execution of our capital allocation
strategy, unlocking value from our portfolio and further enhancing our
financial strength. In the last six months, we have successfully executed
disposals that total more than €200 million of gross proceeds, delivering
value above our original investment.

 

We continue to see significant opportunities in the growing European renewable
market for Greencoat Renewables to create value for its shareholders. As well
as providing future balance sheet flexibility, this latest transaction
underpins the opportunity to create increasing value from older assets
including re-contracting PPAs and options for hybridisation and repowering."

 

--- ENDS ---

 

For further information, please contact:

 

Schroders Greencoat LLP (Investment
Manager)

Bertrand Gautier

Paul O'Donnell

John
Musk
+44 20 7832 9495

 

FTI Consulting (Investor Relations &
Media)

Sam
Moore
                        +353 87 737 9089

Aoife
Mullen
                        greencoat@fticonsulting.com
(mailto:greencoat@fticonsulting.com)

 

Barclays Bank PLC (Joint Broker)

Dion Di
Miceli
                        +44 20 7623 2323

Stuart Muress

James
Atkinson

 

Davy (Broker, NOMAD and Euronext Growth Listing Sponsor)

Brian
Garrahy
                        +353 1 679 6363

Ronan
Veale

 

RBC Capital Markets (Joint Broker)

Matthew
Coakes
                        +44 20 7653 4000

Elizabeth
Evans

 

About Greencoat Renewables PLC

Greencoat Renewables PLC is an investor in euro-denominated renewable energy
infrastructure assets. Initially focused solely on the acquisition and
management of operating wind farms in Ireland, the Company has also invested
in wind and solar assets in other European countries with stable and robust
renewable energy frameworks. It is managed by Schroders Greencoat LLP, an
experienced investment manager in the listed renewable energy infrastructure
sector.

 

 

 

 

 

 

 

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