TIDMTRIG
RNS Number : 9822M
Renewables Infrastructure Grp (The)
15 May 2020
15 May 2020
The Renewables Infrastructure Group Limited
("TRIG" or "the Company", a London-listed investment company
advised by InfraRed Capital Partners ("InfraRed") as Investment
Manager and RES ("Renewable Energy Systems") as Operations
Manager)
Completion of offshore wind farm acquisition and portfolio
update
Completion of investment in Merkur offshore wind farm in
Germany
TRIG has completed the acquisition of a c.36% equity interest in
Merkur, the 396MW operational offshore wind farm in the German
North Sea ("the Project"). This follows the exchange of contracts
to acquire the Project announced in December 2019, and receipt of
German foreign investment approvals and EU merger clearances.
As announced in December, TRIG intends to sell down a share of
its investment to minority co-investors managed by InfraRed,
leaving TRIG with an approximate 25% equity interest in the
Project. This is expected to complete in July 2020 and once
completed, the investment is expected to represent approximately 8%
of TRIG's portfolio value. TRIG has also partnered with the Dutch
pension investor, APG, who acquired the remaining c.64% in the
Project. This is consistent with TRIG's strategy of partnering with
aligned co-investors on larger transactions.
Commercial operations commenced in June 2019 and the Project
benefits from an attractive Feed-in-Tariff for the next 13 years
(until June 2033), followed by a floor price for a further six
years. The existing debt financing in the Project is fixed rate and
fully amortising within the initial subsidy period.
Exit from Erstr äsk onshore wind farm in Sweden
As noted in TRIG's Report & Accounts for the year ended 31
December 2019, the construction of Phase 2 of the Ersträsk wind
farm by its developer, Enercon, has been delayed. Ersträsk is an
onshore wind farm in Sweden being developed in two phases. TRIG
invested in 75% of the equity in Phase 1 (46 MW net) upon it
becoming operational in Q1 2019 and had intended to invest in 75%
of Phase 2 (126 MW net) upon it becoming operational. The delays in
the construction of Phase 2 will result in the project missing key
milestones and, given the near-term prospects for its progression,
the Company has chosen not to proceed with the investment in Phase
2. TRIG will not suffer any financial loss. Under the terms of the
sale and purchase agreement for Ersträsk, the Company is protected:
payment is only due provided the turbines become operational by the
key milestones and the Company took no construction or delay risks.
Phase 2 would have represented c.6% of the Company's portfolio
value as at 31 December 2019.
Under the terms of the acquisition agreement for Ersträsk, TRIG
has an option to sell Phase 1 back to Enercon in the event that
Phase 2 does not complete. TRIG intends to exercise this option
given Phase 1 was only intended to be part of the larger project.
The investment represents c.2% of the Company's portfolio value as
at 31 December 2019. The contractual terms provide for the Company
to recover its investment together with its expected return over
the period of its investment. The sale back to Enercon is expected
to complete in Q3 2020.
Incremental investment in the Fujin wind portfolio
TRIG has made an additional investment into Fujin SAS ("Fujin"),
a holding company that owns a portfolio of five operational
windfarms in France with a gross generation capacity of 87.8MW.
TRIG made an initial investment in Fujin in June 2019, and this
additional investment takes TRIG's holding in Fujin from 35% to
42%. Fujin benefits from inflation-linked Feed-in-Tariffs with
French utility company EDF with, on average, over five years
remaining.
Fujin now comprises approximately 2% of TRIG's portfolio value.
Fujin is owned alongside Akuo Energy, a leading French developer,
who remains the majority shareholder and will continue to operate
the windfarms.
Investment Commitments
The Company began the year with approximately GBP100m of surplus
cash. Following the completed investments in Merkur and Fujin, as
detailed above, as well as in Blary Hill, the Scottish onshore wind
farm, and the planned sell down of Merkur and sale of Ersträsk
Phase 1 during Q3 2020, TRIG expects to be c.GBP50m drawn on its
Revolving Credit Facility ("RCF"), with outstanding commitments of
c.GBP35m, relating to payments for the construction at the Blary
Hill and Solwaybank wind farms due over 2020 and 2021. TRIG's
committed RCF capacity is GBP340m.
InfraRed, the Company's Investment Manager, continues to
evaluate an attractive pipeline of suitable investment
opportunities for the Company.
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Richard Crawford
Phil George
Maitland/AMO +44 (0) 20 7379 5151
James Isola
Zara de Belder
Notes
The Company
The Renewables Infrastructure Group ("TRIG" or the "Company") is
a leading London-listed renewable energy infrastructure investment
company. The Company seeks to provide shareholders with an
attractive long-term, income-based return with a positive
correlation to inflation by focusing on strong cash generation
across a diversified portfolio of predominantly operating projects.
TRIG is targeting an aggregate dividend of 6.76 pence per Ordinary
Share for the year to 31 December 2020.
TRIG is invested in a portfolio of over 70 wind, solar and
battery storage projects with aggregate net generating capacity of
over 1.5GW. TRIG is seeking further suitable investment
opportunities which fit its stated Investment Policy.
Further details can be found on TRIG's website at
www.trig-ltd.com .
Investment Manager
TRIG's Investment Manager is InfraRed Capital Partners Limited
("InfraRed") which has successfully invested in over 200
infrastructure projects since 1997. InfraRed is a leading
international investment manager focused on infrastructure and real
estate. It operates worldwide from offices in London, Hong Kong,
New York, Seoul, Sydney and Mexico City. With over 190
professionals it manages in excess of USD 12 billion of equity
capital in multiple private and listed funds, primarily for
institutional investors across the globe. InfraRed is authorised
and regulated by the Financial Conduct Authority.
The infrastructure investment team at InfraRed consists of over
85 investment professionals, all with an infrastructure investment
background and a broad range of relevant skills, including private
equity, structured finance, construction, renewable energy and
facilities management.
InfraRed implements best-in-class practices to underpin asset
management and investment decisions, promotes ethical behaviour and
has established community engagement initiatives to support good
causes in the wider community. InfraRed is a signatory of the
Principles of Responsible Investment.
Further details can be found on InfraRed's website at
www.ircp.com .
Operations Manager
TRIG's Operations Manager is RES (" Renewable Energy Systems"),
the world's largest independent renewable energy company.
RES has been at the forefront of wind energy development for
over 38 years, with the expertise to develop, engineer, construct,
finance and operate projects around the globe. RES has developed or
constructed onshore and offshore wind, solar, energy storage and
transmission projects totalling more than 17GW in capacity. RES
supports over 6.3GW of operational assets worldwide for a large
client base. Headquartered in Hertfordshire, UK, RES is active in
10 countries and has over 2,000 employees engaged in renewables
globally.
RES is an expert at optimising energy yields, with a strong
focus on safety and sustainability. Further details can be found on
the website at www.res-group.com .
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END
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