Greencoat U.K. Wind Plc, the fund that held Britain’s biggest clean-energy initial public offering this year, agreed to buy two wind farms from BayWa AG.
Greencoat is financing the 70 million-pound ($113 million) purchase using cash and short-term debt, the London-based company said today in a statement. The deal includes the 16.4-megawatt Cotton Farm and the 10.25-megawatt Earl’s Hall plant, both located in eastern England and operating since March.
The acquisition is Greencoat’s first since raising 260 million pounds in an IPO in March to buy projects from RWE AG and SSE Plc. The company purchases wind farms from utilities and other companies, boosting their cash flow while allowing investors to gain from the stable returns wind energy generates.
Today’s deal, which includes prepayment of existing debt and 6.4 million pounds in cash, increases Greencoat’s total capacity to 153.1 megawatts, according to the statement.