Leading listed owner and operator of European renewable energy infrastructure assets, Greencoat Renewables has announced a significant milestone in its growth journey as it officially lists on the Johannesburg Stock Exchange (JSE). This follows GRP’s application in May for a secondary listing on the JSE’s Alternative Exchange (Altx), which was subsequently fast-tracked.
The listing presents a significant opportunity for the Irish-based company, which has a current market capitalisation of c.€850 million, to diversify its shareholder base, enhance liquidity and position itself to take advantage of growth opportunities over time.
“We’re excited to be listing on South Africa’s preeminent bourse, which presents us with access to a deep capital market with sophisticated investors who are familiar with and attracted to GRP’s value proposition. The JSE also has an excellent track record of supporting real asset companies and is expected to provide a strong platform for future growth,” explains Bertrand Gautier, who leads the team as a co-portfolio manager, along with Paul O’Donnell.
“We’re also proud to offer South African investors access to a large and diversified Pan-European platform consisting of 40 renewable energy assets across five countries, producing 1.5GW of energy. This high-quality and modern portfolio is underpinned by long-term, European government-backed cashflows.”
“The European energy transition will require €1.5 trillion in investment to 2030. When considered in the context of a material increase in demand for green electrons by data centres, which are fuelled by Big Tech and AI, the sector represents a unique and compelling long-term opportunity for investors.” says Paul O’Donnell.
He adds that the company’s excellent track record of providing investors with a secure and predictable income, backed by GRP’s scale and established Pan-European footprint, as well as the constant value-added asset management focus of the team, supports this view.
According to Diarmuid Kelly, the Chief Financial Officer, “We remain focused on delivering attractive risk-adjusted returns for shareholders through continued high cash generation and disciplined capital allocation. Our cashflows are proactively managed to provide a combination of security and opportunity which facilitates a progressive dividend that has grown 5.5% on a ZAR CAGR basis since IPO in 2017. In addition, cash generated over and above that required to service dividends is reinvested into the business to grow the net asset value. Our return profile is thus well aligned with long-term, income-focused investors.”
For local investors, it is worth noting that in 2024, GRP generated net cash of €141 million of which €74 million was paid out to investors as dividends and the remainder reinvested in the business. GRP currently trades at a c.9% Euro dividend yield.
The company is managed by Schroders Greencoat LLP, an experienced and specialised investment manager in the listed renewable energy infrastructure sector with over €16 billion in AUM across more than 400 assets globally.
Valeo Capital is the South African corporate advisor and Sponsor bringing GRP to market.
As a reminder, GRP will not place or issue any new shares as part of the listing and will remain listed on the Alternative Investment Market in London and the Euronext Growth Market in Dublin.
