Greencoat Renewables Dividend Exchange Rate Impact on SA Holders

Greencoat Renewables, an Irish renewable energy investment trust listed on the London Stock Exchange, announced its quarterly dividend for the quarter ended December 31, 2025[1][2]. The key details are:

Parameter	Value
Dividend per share	1.70250 euro cents
Exchange rate	1 EUR cent = 18.704 South African cents
Gross dividend (ZA cents)	31.84356 cents per share
Irish Dividend Withholding Tax (DWT)	25%
Net after Irish DWT	23.88267 cents per share
Potential South African Dividend Tax (20%)	17.51396 cents per share

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The dividend exchange rate announcement directly determines the SA rand return for local shareholders. The conversion of 1.70250 euro cents to 31.84356 South African cents means SA investors receive their dividends in local currency, eliminating foreign exchange settlement complexity but exposing them to EUR/ZAR exchange rate movements[1].

• Irish Dividend Withholding Tax (25%):
  Automatically deducted at source
• South African Dividend Tax (20%):
  Applied to the net dividend after Irish DWT
• Refund Opportunity:
  SA residents can apply for a full refund of the Irish DWT from the Irish Revenue Commissioners, which significantly improves the effective return for those who successfully reclaim the tax[1]

Scenario	Net Dividend (ZA cents)
Before SA DWT, after Irish DWT	23.88 cents
After full Irish DWT refund + no SA DWT	31.84 cents
After full Irish DWT refund + SA DWT	17.51 cents

The ability to recover the Irish withholding tax is critical—without it, SA shareholders face a effective tax burden of approximately 40% (25% Irish + 20% SA less credits), significantly eroding returns[1].

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Renewable energy trusts, particularly those listed in London, have demonstrated

despite NAV pressures:

Trust	Dividend Yield (2025)	NAV Discount	Key Highlights
Greencoat UK Wind (UKW)	11.2%	0.72x NAV	59% cash flows fixed over 7 years
Renewables Infrastructure Group (TRIG)	11.5%	0.64x NAV	Debt-free, 2.1x dividend cover
Greencoat Renewables	~8-9%	Variable	Euro-denominated, wind/solar portfolio

1. Attractive Yields:
   UK-listed renewable energy trusts offer yields exceeding 11%, significantly above market averages[3][4]

2. Trading at Discounts:
   Both major trusts trade at discounts to NAV (0.64x-0.72x), presenting potential mean-reversion upside[3][4]

3. Cash Flow Stability:
   • TRIG maintains 75% of revenue fixed
   • UKW has 59% of cash flows fixed over 7 years
   • Strong operating cash flow supports dividend coverage[3][4]

4. Energy Price Recovery:
   Growing UK electricity demand (~2%/year to 2030) and recovering EU energy demand support long-term growth[3][4]

• NAV declines in 2024-2025 due to lower power price forecasts and wind variability
• Currency exposure for international investors adds return volatility
• Regulatory changes in both Ireland and SA may impact tax treatment

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The dividend exchange rate announcement directly impacts SA shareholders’ returns through currency conversion and tax implications. While the gross dividend appears attractive at 31.84 SA cents per share, the effective return depends critically on tax recovery mechanisms. Despite NAV pressures affecting the broader sector, renewable energy trusts continue to offer compelling dividend yields (11%+) and trade at significant discounts to NAV, presenting potential upside as energy markets recover. For SA investors, the key considerations are:

1. Tax efficiency
   through Irish DWT refund claims
2. Currency risk
   management between EUR and ZAR
3. Sector valuation
   opportunity with NAV discounts

The investment attractiveness remains positive for income-focused investors, though careful attention to tax optimization is essential for maximizing returns.

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[1] Investing.com - “Greencoat Renewables announces dividend exchange rate for SA holders” (February 16, 2026)
https://www.investing.com/news/company-news/greencoat-renewables-announces-dividend-exchange-rate-for-sa-holders-93CH-4507594

[2] Longbridge - “Notice of Dividend Currency Exchange Rate” (January 29, 2026)
https://longbridge.com/en/news/276050293

[3] Interactive Investor - “Stockwatch: why I like these two renewable infrastructure funds” (March 10, 2026)
https://www.ii.co.uk/analysis-commentary/stockwatch-why-i-these-two-renewable-infrastructure-funds-ii538403

[4] Yahoo Finance UK - “Here are 10 UK shares with 9%+ dividend yields in 2026”
https://uk.finance.yahoo.com/news/10-uk-shares-9-dividend-073100668.html