A UK investment fund focused on buying wind farms in Britain has successfully raised £260 million and hit its maximum target on the London Stock Exchange.

Managed by Greencoat Capital, the infrastructure fund had initially planned to raise £205 million to buy six wind farms from energy companies SSE and RWE, with a total capacity of 126.5MW.

It said as a result of the significant oversubscription from investors, SSE’s investment has been scaled back to 10 million shares, having previously indicated it would invest up to £43 million in stock.

Tim Ingram, Non-Executive Chairman of Greencoat UK Wind said: “We are delighted at the response to our offer from private and institutional investors. The strong demand highlights the attractiveness of Greencoat UK Wind’s target 6% dividend yield emanating from expected long-term, predictable returns. The listing provides us with the platform to build upon the initial portfolio of operational wind farms, taking advantage of the underlying growth we expect in the wind farm market to deliver investors a sustainable and growing return on their investment.”

Greencoat UK Wind said it had placed 260 million shares at a price of 100 pence per share. The Government’s Department of Business, Innovation and Skills (BIS) also showed support and subscribed for 50 million shares.