Greencoat acquires Letteragh Wind Farm in €35.4m deal; Graziano joins the board from Vestas

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Listed Greencoat Renewables, a Euro-based renewable infrastructure company, has acquired Letteragh Wind Farm, a 14.1MW wind farm situated in County Clare, on Ireland’s west coast, for an initial consideration of €35.4m. This brings Greencoat Renewables’ portfolio of operational wind assets to 476MW.

Seahound Wind Developments Limited developed Letteragh. HSH Nordbank provided project finance for the wind farm’s construction.

In June 2018, HSH Nordbank made available to its Irish client Seahound Wind Developments Limited long-term project finance of just under € 40m to realise the Letteragh wind farm project in the west of the Irish Republic.

The wind farm consists of 6 Enercon E92 turbines that have been operational since December 2019. The wind farm’s revenues are contracted under the REFIT 2 scheme, providing long term guaranteed minimum floor price for the electricity generated until 2032. Enercon will continue to manage the operations and maintenance contract.

The acquisition is being funded by the Company’s €380m credit facility. Following the acquisition, Greencoat Renewables total borrowings represent 38% of Gross Asset Value.

According to a Davy analyst, the purchase price was slightly above average for the portfolio but in line with similar assets of age and wind source.

Greencoat Investment Manager, Paul O’Donnell, said the Letteragh Wind Farm acquisition adds another high-quality wind asset with long-term contracted revenues to the portfolio. 

“We will continue to work with both international and local developers, providing them with an opportunity to recycle capital into new projects, while enabling us to drive long-term value for our shareholders,” said O’Donnell.

In late January the company announced the appointment of Marco Graziano to the Board as an independent non-executive director with immediate effect. Graziano was also appointed to the Company’s Audit, Management Engagement, Nomination and Remuneration Committees.

The new hire has a strong engineering background and extensive experience in energy, industry, and renewables having spent more than 35 years working across these sectors.

He has held senior management positions at Alstom, Areva and Vestas, most recently as President and Chairman of the Board for Vestas Southern Europe, MENA, and Latam. He has been Senior Advisor to Eurotradia International – Renewables Energies.

Greencoat Renewables made an Initial Placing launched on 21 November 2019 with gross proceeds of €125m in a materially oversubscribed placing.

Net proceeds will be used, in line with the Company’s strategy, to refinance the Company’s Revolving Credit Facility, allowing the Company to make acquisitions whilst maintaining total gearing (currently 48% and falling to 36% on a pro forma basis for receipt of the net proceeds of the Initial Placing) within the target range.