Archived article: This article was correct at the time of publishing. Tax, investments and pension rules can change over time so the information below may not be current.

Greencoat UK Wind – new fund raising

With infrastructure set to become an increasingly prominent investment theme, Greencoat UK Wind has announced that it is issuing its second raise as part of its £300 million 12-month share issuance programme. The target for this issuance is £100 million.

Louie French Louie French
28 October 2016

About Greencoat UK Wind

Greencoat UK Wind is a specialist investment trust that invests in large operational UK-based wind farms and targets returns of 8-9% per annum, including a 6.34p annual dividend rising in line with inflation. Approximately half of its revenues are guaranteed by Government subsidies, while the other half is determined by power price agreements with major utility companies. Stephen Lilley and Laurence Fumagalli are the trust’s portfolio advisers, which currently consists of 19 projects and in total generates sufficient electricity to power 375,000 homes.

We believe that the optimum time for clients to invest is during a capital raising such as this one, where the issue price tends to be lower than the market price. Funds in the sector have seen their prices and premiums to net asset value (NAV) increase over the summer, which is linked to the attractive yields on offer and sterling weakness acting as a tailwind for power prices. The 4% premium to invest in this share issuance is lower than the average premium across the sector.

How to take part

If you are a client and you would like to invest in Greencoat UK Wind via this share issuance, you will need to have cash in your relevant account. You can then fill in the form below with the amount you want to invest. There is a dealing fee of £7.50 and so the cash will need to cover this (there is no stamp duty). Please specify which account you would like to hold your investment in – whether it’s your ISA, SIPP or investment account.

If you are not a client but would like to invest in Greencoat UK Wind via this share issuance, you will first need to open an account and deposit the amount you would like to invest in cash. There is a dealing fee of £7.50 and so the cash will need to cover this (there is no stamp duty).

The below is the expected timetable for the share issuance. Update: We now understand that initial placing closes 16/11/2016 at 5pm.

1/11/2016 – Initial placing opens

15/11/2016 – 1pm: offer for subscription closes

16/11/2016 – 5pm: Initial placing closes (orders subject to availability and may not be accepted after this date)

22/11/2016 – Admission

Do you have any questions?

If you would like to find out more about Greencoat UK Wind, please call in on 020 7189 2400, request a call back or email best@bestinvest.co.uk and a member of our team will be in touch.

For further information on the opportunities that investing in infrastructure may present in the future, please see this article written by managing director Jason Hollands. There, you can sign up to receive updates on when further investment companies are fund raising.

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This email does not constitute personal advice. The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. Investment trusts are similar to funds in that they provide a means of pooling your money but they are publicly listed companies whose shares are traded on the London Stock Exchange. The price of their shares will fluctuate according to investor demand and changes in the value of their underlying assets. Due to their nature, specialist funds can be subject to specific sector risks. Investors should ensure they read all relevant information in order to understand the nature of such investments and the specific risks involved.