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TRIG The Renewables Infrastructure Group Limited

100.40
-0.60 (-0.59%)
Last Updated: 09:11:49
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
The Renewables Infrastructure Group Limited LSE:TRIG London Ordinary Share GG00BBHX2H91 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.60 -0.59% 100.40 100.20 100.60 101.40 100.40 101.40 968,552 09:11:49
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Finance Services 9.2M 5.8M 0.0023 440.00 2.51B

Renewables Infrastructure Grp (The) Completion of Acquisition and Portfolio Update (9822M)

15/05/2020 7:00am

UK Regulatory


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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 .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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May 15, 2020 02:00 ET (06:00 GMT)

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