The Renewables Infrastructure Group Limited - Acquisition of interest in East Anglia One offshore wind farm in the UK
|Category||Infrastructure / UK|
InfraRed Capital Partners Limited
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).
The Board of TRIG is pleased to announce that the Company has exchanged contracts to acquire a 14.3% indirect equity interest in East Anglia One, a 714MW newly constructed operational offshore wind farm located off the coast of Suffolk in the North Sea ("the Project"), from Green Investment Group ("GIG"). The investment has been made in a 50% interest in the holding company through which GIG's initial investment was made (the "Holding Company"). The investment is subject to a consent from The Crown Estate and is expected to complete by Q1 2021. Following completion of the transaction, offshore wind investments are expected to represent approximately 29% of TRIG's portfolio.
TRIG has partnered with InfraRed European Infrastructure Income Fund 4 ("IREIIF4") for the transaction, a fund managed by InfraRed, which will acquire a 5.7% indirect equity interest in the project alongside TRIG. This is consistent with TRIG's strategy of partnering with aligned co-investors on larger transactions. TRIG's investment will be financed from a combination of its existing cash balance and a drawdown from the Group's revolving acquisition facility.
The Project was developed by ScottishPower Renewables, a subsidiary of Iberdrola, a global energy leader with 34GW of installed renewables capacity. The turbines utilise Siemens' direct drive technology, with Siemens providing maintenance services in relation to the turbines under an initial contract with the Project. The Project benefits from an attractive Contract-for-Difference ("CfD") subsidy for the next 15 years with inflation indexation. Debt financing at the Holding Company level (the consortium level for GIG, TRIG and IREIIF4) is fixed rate and fully amortising within the subsidy period.
The investment fits well into the Company's investment strategy, providing subsidised revenues for the next 15 years, lowering overall power price sensitivity of the portfolio and strengthening the Company's position in the attractive offshore wind market. Offshore wind projects will be crucial to the UK's ambition to meet net-zero carbon emissions by 2050, and East Anglia One provides enough clean energy to power the equivalent of more than 630,000 homes.
Helen Mahy, CBE, Chairman of TRIG, said:
"We are delighted to be investing in this high quality asset which marks our continued commitment to supporting the global transition to a more sustainable future, and to be joining with such well-established and respected partners in Green Investment Group and ScottishPower Renewables. East Anglia One is TRIG's fourth investment in the offshore wind sector and its second offshore wind investment in the UK. Offshore wind is essential to the UK meeting its 2050 net-zero targets."
The Renewables Infrastructure Group Limited (TRIG)
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.
InfraRed Capital Partners Limited (InfraRed)
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 and Sydney. With over 170 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.
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.