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
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
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.
On 31st August 2010 the Department of Economic Development of the Isle of Man Government sought an ‘Expression of Interest to Tender for the Design, Finance, Build and Operation of a 20MW Wind Farm in the Isle of Man’. Interest in this potential development has been significant.
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