Greencoat UK Wind acquires a stake in Hornsea 1

Greencoat UK Wind plc (UKW) has agreed to acquire a net 12.5% stake in the
Hornsea One offshore wind farm from Global Infrastructure Partners (GIP) for a total cash consideration (including cash and working capital) of approximately £400 million. The acquisition is expected to complete in Q3 2022.

Developed by Ørsted,
Hornsea One is the world’s largest offshore wind farm to date. It is located in the North Sea off the east coast of England. The site consists of 174 Siemens Gamesa Renewable Energy. SWT-7.0-154 turbines, spanning across an area of 407km2, all of which have been installed. The site was fully commissioned at the end of 2019 and is anticipated to power over one million homes in the UK. The project also benefits from an inflation-linked Contract for Difference (CfD) subsidy at a price of £175.25/MWh.

Hornsea 1 is currently 50% owned by Orsted and 50% owned by GIP, with GIP's 50% stake part funded by £2.9 billion of limited recourse debt. UKW's pro rata share of this limited recourse debt is £0.7 billion, giving a total enterprise value of £1.1 billion for UKW's net 12.5% stake. Ørsted will continue to provide operation, maintenance and management services to the wind farm.

The acquisition is expected to be funded from cash flow and, to the extent required, the Company's revolving credit facility.

Shonaid Jemmett-Page, Chairman of the Company, said: "As the leading independent UK wind farm owner, we are pleased to announce our investment into the world's largest offshore wind farm. Hornsea 1 has a high load factor and high CFD price which complements our subsidy free investments.

"This transaction, once completed, will add another high quality operating asset to our portfolio and increase our net generating capacity to over 1.6GW.

"We continue to see an attractive pipeline of projects, both onshore and offshore, and given the size and scale that the Company has attained over recent years, we remain strongly positioned to deliver more value-accretive acquisitions and extend our track record of strong shareholder returns."

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