A Guernsey fund is seeking to raise £300 million to buy a clutch of European wind and solar farms.
The Renewables Infrastructure Group (TRIG) has announced that it plans to raise up to £300 million in an Initial Public Offering (IPO) so it can buy an initial portfolio of 14 onshore wind farms and four solar photovoltaic (PV) parks in the UK, France and Ireland.
TRIG is a Guernsey-domiciled registered, closed-ended investment scheme which is intending to list on the Main Market of the London Stock Exchange (LSE). The Financial Times is reporting that, if successful, it would become the biggest clean energy flotation in London this year while Bloomberg is reporting that it would be the largest IPO of a clean energy company in London, period.
The move comes a month after another Guernsey registered, closed-ended investment scheme, Bluefield Solar Income Fund, said it was looking to raise £150 million by selling shares in London with the aim of buying solar PV plants in the UK. It expects the shares to start trading in July.
TRIG's announcement of an intention to float revealed that it is looking to acquire an initial portfolio of 14 onshore wind farms and four solar parks with a combined capacity of 276 megawatts. It is then planning to make further investments in the future in the UK and other Northern European countries, including France, Ireland, Germany and Scandinavia.
Helen Mahy, the Non-Executive Chairman of TRIG, said: "TRIG will give investors the potential to secure a long-term, stable, inflation-linked yield from a diversified portfolio of high-quality operational wind and solar assets."
The investment manager will be InfraRed Capital Partners Limited, which has a 15-year track record in raising and managing infrastructure and real estate funds, with currently around US$6 billion of equity under management. It launched and manages the Guernsey incorporated HICL Infrastructure Company Limited, the largest of the London-listed infrastructure investment companies with a market capitalization of £1.5 billion.
The operations manager will be Renewable Energy Systems Limited (RES), a power-plant developer owned by the construction company Sir Robert McAlpine Ltd. TRIG will have right of first offer over a pipeline of assets developed by RES.
TRIG is targeting an initial annualised dividend of 6 pence per ordinary share with the aim of this increasing progressively in line with inflation over the medium term and an internal rate of return in the region of 8-9% on the issue price of 100p to be achieved over the longer term. The placing and offer for subscription will open in early July 2013 and the IPO will close and trading will comment in late July 2013. Canaccord Genuity Limited and Jefferies International Limited are acting as joint sponsors and bookrunners in relation to the IPO.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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