GRP to acquire 51.9MW of wind capacity in France

RNS Number : 1178H

Greencoat Renewables PLC

23 March 2020

 

Greencoat Renewables agrees to acquire 51.9MW of operating wind capacity in France

Transaction marks entry to continental Europe and brings total installed capacity to 528.1MW

Dublin, London, 23 March 2020: Greencoat Renewables PLC, ("Greencoat Renewables" or the "Company"), the renewable infrastructure company invested in euro-dominated assets, is pleased to announce an agreement to acquire a portfolio of operating wind assets in France from John Laing Group for a total consideration of €30.3 million. The portfolio of three windfarms come with 16-year long term fixed rate project finance and have an overall net enterprise value of €95 million. Following the acquisition, Greencoat Renewables' total installed capacity base will increase to 528.1MW.

The acquisition will mark the Company's first investment in the continental European renewable energy market. The assets will benefit from France's stable and supportive tariff regime which guarantees a fixed price for the electricity produced by the asset. All assets will benefit for fixed price Feed in Tariff ("FIT") with a weighted average remaining FIT of 12.3 years.

The acquisition will close following French regulatory approval and will be funded by the Company's €380 million credit facility. Following the acquisition, Greencoat Renewables' total borrowings will represent 43%[1] of Gross Asset Value.

The portfolio comprises:

• Passilly - 20.0MW wind farm commissioned in September 2016 consisting of 10 Gamesa 2.0MW turbines, located in the Burgundy region;

• Sommette - 21.6MW wind farm commissioned in December 2017 consisting of 9 Nordex 2.4MW turbines, located in the Picardy region;

• St Martin - 10.3MW wind farm commissioned in June 2018 consisting of 5 Senvion 2.05MW turbines, located in Saint-Martin-l'Ars.

Bertrand Gautier, Investment Manager said:

"Consistent with our long-term strategy, we are pleased to be making our first investment into the French wind market. The assets benefit from France's stable regulatory regime, with the fixed-price Feed-in-Tariff guaranteeing power prices for the next 12.3 years. Our existing portfolio already has 97% of its cashflows contracted under REFIT until Jan 1 2028, and this acquisition further extends the proportion and duration of our fixed-price revenues.

The acquisition will bring gearing to 43%, which is towards the lower end of our target range and will provide flexibility to pursue further opportunities as they arise. We are also pleased to have partnered with John Laing, again demonstrating our ability to transact with leading investors and developers across the sector."

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For further details contact:

Greencoat Capital LLP (Investment Manager)
Bertrand Gautier Paul O' Donnell Tom Rayner					[phone]
FTI Consulting (Investor Relations & Media)
Jonathan Neilan					[phone]
Melanie Farrell					[e-mail]
Davy (Broker, NOMAD and Euronext Growth Adviser) Fergal Meegan Barry Murphy Ronan Veale					[phone]
RBC Capital Markets (Joint Broker) Matthew Coakes Jonathan Hardy					[phone]

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 is now also considering expansion into wind and solar assets in certain other Northern European countries with stable and robust renewable energy frameworks. It is managed by Greencoat Capital LLP, an experienced investment manager in the listed renewable energy infrastructure sector.

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[1] Gearing is based on aggregate Group debt comprising draw-down Group's revolving credit facility and Group's proportionate share of long-term project finance debt at SPV's level.

 

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