The Renewables Infrastru... Share Discussion Threads

[jonwig] 08/9/2014 07:02

graham - the target returns are in the latest factsheet:



I see that about 25% of their generating capacity is in Scotland. Something which hasn't really registered up to now!

[grahamg8] 07/9/2014 20:59

Just noticed that I bought my first TRIG shares a year ago. Found my original post #18. I was hoping for a total return of 11.65% with a share price at 109p. Well we haven't quite made it and I'm sitting on 8.95% if I cashed in tomorrow. The portfolio return is 9.1% and my memory says their target was/is 9%. With dividends rising in line with inflation the future looks like 6.12p in dividends and the same 2% on the share price for 7.75% more overall by this time next year. As others have said before pretty unexciting but a lot better than money in the bank. And a good fit with my portfolio that has plenty of risks elsewhere.

[cwa1] 04/4/2014 08:12

Dividend received in one of my accounts.

[cwa1] 02/4/2014 15:40

C shares have been added to my account. Pretty quickly and correctly.

[mad foetus] 02/4/2014 09:20

jonwig,
many thanks for all your work on setting up threads for funds of this type: it is very helpful for those of us (probably the silent majority) who are interested in this sector and want to keep abreast of things.

[cwa1] 02/4/2014 09:12

As an aside, I wonder who'll be the first broker to credit the shares applied for correctly?

[cwa1] 02/4/2014 08:43

Yes, I suspect it won't be a roller coaster ride!

[jonwig] 02/4/2014 08:20

Thanks - I've added that chart to the header, though it's not been populated yet.

I suspect it will be a very boring chart, as the conversion in in July.

[cwa1] 02/4/2014 08:08

Ticker for new shares, FWIW, is TRGC.

[cwa1] 28/3/2014 16:19

Agreed, good result. Added a few myself.

[jonwig] 28/3/2014 16:13

Yes, that's a good result. It looks as though I've got all I applied for.

[cwa1] 28/3/2014 15:33

THE RENEWABLES INFRASTRUCTURE GROUP LIMITED

Results of Placing, Open Offer and Offer for Subscription

28 March 2014

The Renewables Infrastructure Group Limited (the "Company") is pleased to announce the results of the Placing, Open Offer and Offer for Subscription of C Shares (the "Issue"). The Issue has raised gross proceeds of GBP66.2 million.

A total of 66,154,395 C Shares will be issued at a price of GBP1.00 per C Share, of which 45,078,070 C Shares will be issued pursuant to the Open Offer, 519,000 C Shares will be issued pursuant to the Offer for Subscription and 20,557,325 C Shares will be issued under the Placing. Renewable Energy Systems Limited, the Company's operations manager, subscribed for 3.75m C Shares (equivalent to its open offer entitlement). All applications will be met in full.

and

Commenting on today's announcement, Helen Mahy, non-executive chairman of the Company, said:

"We are delighted that so many of our existing shareholders, including our larger institutional investors, have supported this capital raising, recognising the appeal of TRIG's attractive yield. The capital will be used to finance the acquisition of the two large solar parks by the Group announced yesterday(1) and, with the Group's revolving acquisition facility, will be used to acquire further investments from our strong pipeline of opportunities. With 319 MW spread across 22 investments in three countries and two sectors, we have the largest and most diverse portfolio amongst our peers and this capital raising enables further investments to be added to the Group's portfolio of operational onshore wind and solar PV assets."

[cwa1] 18/3/2014 12:10

Thanks jonwig. Am happy to have a little more exposure to the sector but certainly not a farm bet being considered. Seems like a reasonably cost effective way to gently increase my holding here, so will take up my rights and a few excess entitlements I think.

[jonwig] 18/3/2014 10:07

Depends whether you want more sector exposure - dilution won't be a problem.

I like the fact that it's ungeared at group level (unlike Infinis) and have applied for a few excess.

[cwa1] 18/3/2014 09:21

Morning All

Coming close to decision day on take up. Anyone got strong feelings as to whether to take up rights and/or take up any additional ones available under the excess entitlements?

Cheers

[stockonomist] 03/3/2014 00:08

Wind farm earnings hit by plans to freeze carbon tax



Companies likely to be affected include Greencoat UK Wind, whose prospectus ahead of the flotation last year highlighted how wind farms stood to benefit from the carbon tax, and The Renewables Infrastructure Group (TRIG), which owns wind and solar farms and said in its results last week that it would see a slight reduction in NAV per share if the tax were frozen.

[topvest] 13/1/2014 21:16

It says there will be an open offer and so we will get some more, if we want them. I will probably take up.

[jonwig] 13/1/2014 10:13

Prospectus p139, section 8c.

more important, p140:

8.16 There are no provisions of Guernsey law which confer rights of preemption
in respect of the allotment of the Shares. However, the Articles provide that the Company is not permitted to allot (for cash) equity securities (being Shares or C Shares or rights to subscribe for, or convert securities into, Shares or C Shares) or sell (for cash) any Shares or C Shares held in treasury, unless it shall first have offered to allot to each existing Shareholder and holder of C Shares, as the case may be, on the same terms, and at the same price as those Relevant Securities are proposed to be offered to other persons on a pro rata basis to the number of shares of the relevant class held by those holders (as nearly as possible without involving fractions).

[jonwig] 13/1/2014 08:52

The use of 'C' shares means existing holders won't be diluted.

Whether retail investors are included will depend on the size of the offer: there will be a limit to the number of shares which can be issued whilst ignoring pre-emption rights.
The details will be in the prospectus: I'll look later when I've time.

[grahamg8] 13/1/2014 08:00

Well jonwig it looks as if more equity is on the cards. Presumably there will be more debt added as each new project is bought up. Lets hope existing shareholders get a chance to buy shares at a discount rather than the whole lot being reserved for institutions. I'm not holding my breath. Been shafted far too often in the past.

[grahamg8] 24/11/2013 21:00

Yes, non recourse is good. So we seem to be gearing up as each project is brought under the TRIG umbrella. Surplus cash is expected to achieve 9.5% return; although it is again unclear whether this is before or after borrowing is taken into account. But if all the projects achieve 9.5% return and the long run dividend is 6% we should get an average annual growth in assets/share price of 3.5%. Nothing startling but a decent return on a low risk investment.

[jonwig] 23/11/2013 09:07

LOL, Graham, I didn't get as far as p88!!

However, I think it's explained on p7 (section B35), as group level against individual farm project finance:

The Group may enter into borrowing facilities in the short term
principally to finance acquisitions. Such short term financing is
limited to 30 per cent. of the Portfolio Value. It is intended that any
facility used to finance acquisitions is likely to be repaid, in normal
market conditions, within a year through further equity fundraisings.

Wind farms and solar parks, typically with 25 year operating lives,
held within Portfolio Companies generate long term cash flows
that can support longer term project finance debt. Such debt is
nonrecourse and typically is fully amortising over a 10 to 15 year
period. There is an additional gearing limit in respect of such
nonrecourse debt of 50 per cent. of the Gross Portfolio Value
(being the total enterprise value of such Portfolio Companies),
measured at the time the debt is drawn down or acquired as part
of an investment. The Company may, in order to secure
advantageous borrowing terms, secure a project finance facility
over a group of Portfolio Companies.

Which seems to square it. The "non-recourse" bit is important.

[grahamg8] 22/11/2013 17:46

Interesting jonwig. Page 88 of the prospectus seems to contradict page 3:

The debt in the Initial Portfolio will represent approximately 49 per cent. of the Gross Portfolio Value
(following a planned prepayment immediately upon the acquisition of the Initial Portfolio) and is in the
form of project finance, which the Company believes represents attractive longterm
financing. A further
planned prepayment of debt by not later than 31 October 2013 will further reduce this debt to
approximately 46 per cent. of the Gross Portfolio Value.

I accept your comment about short term debt being replaced by equity. That is why I thought we would see a debt RNS. Instead we went staight to equity. Hence surprise.

[jonwig] 21/11/2013 17:35

graham - no, this is standard practice with infrastructure/ renewables funds: short-term debt to fund acquisitions then replaced by equity.

Also, issue tends not to be dilutive to existing holders. Honestly, I wouldn't invest in these things if they had financial gearing to any great extent!

Prospectus p3:

The Group may enter into borrowing facilities in the short term
principally to finance acquisitions. Such short term financing is
limited to 30 per cent. of the Portfolio Value. It is intended that any
facility used to finance acquisitions is likely to be repaid, in normal
market conditions, within a year through further equity fundraisings