The Renewables Infrastructure Group Limited - Acquisition of interest in Gode Wind 1 offshore wind farm, Germany
InfraRed Capital Partners Limited
The Board of TRIG is pleased to announce that the Company has exchanged contracts to acquire a 25% indirect equity interest in Gode Wind 1 ("the Project"), a 330MW offshore wind farm, located in the German North Sea. The Project has established a strong track record since operations commenced in February 2017 and benefits from an attractive Feed-In Tariff. Following the completion of the transaction, Gode Wind 1 would represent approximately 8% of the portfolio. The Transaction is consistent with TRIG's strategy of investing in countries with stable renewable energy frameworks and in long-term income-producing projects within a diversified portfolio.
The Project was developed and constructed by Ørsted who will continue to own 50% of the equity in the Project and also provide Operations & Maintenance ("O&M") services under a 20 year contract.
The Project is comprised of 55 Siemens Gamesa 6MW turbines. It is supported by a Feed-in-Tariff until November 2027, followed by a floor price for a further 10 years. The investment is being acquired from Global Infrastructure Partners ("GIP") as part of their divestment of their 50% stake in the underlying project. The investment will be held alongside funds managed by a leading institutional fund manager. The holding company that the investment is made in has bond financing in place at a fixed rate of interest and fully amortising within the initial subsidy period, consistent with TRIG's approach to the term financing of its Projects. The underlying wind farm has no additional leverage.
TRIG's investment, which is subject to lender consent and competition clearance, will be financed from a combination of the proceeds of its recent fund raise and a drawdown of the Group's revolving acquisition facility.
On completion, the non-UK share of TRIG's portfolio will be approximately 42%, including agreed commitments. The Investment Manager is actively pursuing a pipeline of attractive opportunities for the Company within its European markets including in offshore wind. Such opportunities are likely to be of significant scale and therefore will involve investing alongside co-investors. The Investment Manager is developing a network of potential co-investors for TRIG and in order to maintain a balanced and diversified portfolio, the Company may sell down a portion of its larger non-UK investments to such investors
Helen Mahy CBE, Chairman of TRIG, said:
"The Board of TRIG is delighted to make the Company's second investment in offshore wind in this important market. Offshore wind has developed into an attractive investment category and has been growing at pace in Germany over the last 4 years. TRIG now has investments in each of the two largest offshore wind markets in the world."
Richard Crawford, of InfraRed Capital Partners, said:
"We are pleased to be shareholders alongside Ørsted who have a strong demonstrable track record in the global offshore wind industry. Our ability to source, manage and execute deals in the space is particularly important given the future direction of the European renewables market and the critical importance of offshore wind to meeting climate change 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 6.64 pence per Ordinary Share for the year to 31 December 2019.
TRIG is invested in a portfolio of 64 wind, solar and battery storage projects in the UK, France, the Republic of Ireland and Sweden including the acquisition announced today, with aggregate net generating capacity of 1,446MW. 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, which has successfully invested in over 200 infrastructure projects since 1997. InfraRed is a leading global 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 around 150 professionals it manages USD 12bn of equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed is authorised and regulated in the UK by the Financial Conduct Authority.
The infrastructure investment team at InfraRed consists of c. 80 investment professionals 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, www.ircp.com.
TRIG's Operations Manager is RES (Renewable Energy Systems Limited), the world's largest independent renewable energy company.
RES has been at the forefront of wind energy development for over 35 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 16GW in capacity. RES' operational asset portfolio exceeds 3.5GW 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.