The Renewables Infrastructure Group Limited – three interrelated projects

4 April 2019 Investments
InfraRed announced the completion of the last of three interrelated projects on behalf of TRIG in connection with the investment alongside Fred. Olsen Renewables in their portfolio of UK wind farms.

Firstly: an extension of TRIG’s acquisition facility with RBS and NAB from £120m to £204m, giving TRIG sufficient capital to undertake the investment alongside its cash in hand

Secondly: the acquisition itself, for £246m. The transaction comprised a 49% equity interest in a group of six operating wind farms in Scotland and the provision of 100% of a mezzanine loan to refinance loans from the vendor. The transaction process commenced in November 2014 and was completed on 25 June. Fred. Olsen Renewables will continue to manage the project companies with RES providing company directors on behalf of TRIG.

Thirdly: An institutional equity placing raising £128m, to be issued out of the 12-month Share Issuance Programme launched in December 2014 to partially repay the acquisition facility. The successful fund raise was conducted against a difficult backdrop, with the UK government in its Summer Budget removing a tax allowance for renewable energy (Levy Exemption Certificates) causing the placing to be delayed by 1 week whilst a supplementary prospectus was prepared to explain the implications of the budget changes.

These transactions increase the market value of TRIG to £660m, grow its net generating capacity by half to 658MW and allow TRIG to extend its scale advantages in a highly competitive segment of listed operating renewable energy funds.

For further information, please refer to the TRIG website, which contains several press releases regarding the 3 projects.

Further reading