DUBLIN: Greencoat Renewables PLC has agreed to sell a portfolio of six Irish onshore wind assets with a combined net capacity of 115.7 megawatts, the company announced Tuesday. The transaction, which includes an upfront payment of €139 million and an additional €17 million in deferred consideration over 2026 and 2027, is expected to close in June.
The buyer, HitecVision, will collaborate with Greencoat Renewables to explore value creation opportunities for a jointly owned wind farm. The sale aligns with the company’s broader portfolio management strategy, which includes asset divestitures, power purchase agreements (PPAs), and reinvestment efforts aimed at long-term financial stability.
As part of its capital allocation strategy, Greencoat Renewables will use proceeds from the sale to repay its revolving credit facility (RCF), reducing its outstanding balance from €201 million reported in the first quarter to an estimated €51 million. The company remains committed to lowering its gearing ratio below 50% in the medium term.
The portfolio being sold consists of full ownership in five assets totaling 65.7 megawatts and a 50% stake in one of its larger wind farms. Following the transaction, the company’s five-year projected contracted cash flow mix will increase by approximately two percentage points.
Greencoat Renewables has been actively managing its portfolio, with the latest sale building on the November 2024 disposal of the Kokkoneva wind farm in Finland. In the past six months, the company has raised over €200 million from asset sales across seven sites, enhancing its financial flexibility.
Negotiations are also underway for the sale of a minority stake in the 50-megawatt Andella wind farm in Spain, with potential proceeds earmarked for further debt repayment. Meanwhile, earlier this month, Greencoat Renewables signed a second corporate PPA with Keppel DC REIT to supply power to two Dublin data centers over a 10-year period. This agreement is included in the disposed portfolio, bringing the company’s total PPA commitments to approximately 20% of its five-year merchant volumes.
“This transaction reflects our disciplined capital allocation strategy, unlocking value from our portfolio and further strengthening our financial position,” said Paul O’Donnell, partner at Schroders Greencoat LLP. “With more than €200 million in asset disposals over the past six months, we continue to create value for shareholders while maintaining balance sheet flexibility.”