TIDMTRIG
RNS Number : 2744A
Renewables Infrastructure Grp (The)
27 December 2017
27 December 2017
The Renewables Infrastructure Group Limited
("TRIG" or the "Company", a London-listed investment company
advised by InfraRed Capital Partners as Investment Manager and RES
(Renewable Energy Systems) as Operations Manager)
Investment in Sheringham Shoal Offshore Wind Farm
-- TRIG has completed an investment of approximately c.GBP80
million to acquire a 14.7% indirect equity interest in the 316.8MW
Sheringham Shoal Offshore Wind Farm in the North Sea (the
"Transaction")
-- The Transaction increases TRIG's portfolio net generating
capacity by approximately 47MW to 820MW
-- The Project has an established operating history and earns
its revenues predominantly under the ROC regime at a rate of 2.0
ROCs per MWh until 2032
-- This represents TRIG's first allocation to the offshore wind
sector and is consistent with TRIG's strategy of investing in
long-term income-producing projects
The Board of TRIG is pleased to announce that the Company has
completed an investment to acquire a 14.7% indirect equity interest
in the Sheringham Shoal Offshore Wind Farm, a 316.8MW project
located in the North Sea off the coast of Norfolk (the
"Project").
This acquisition, TRIG's first investment in an offshore wind
project, was made for a total consideration of approximately GBP80
million (including transaction costs). The investment, giving TRIG
an indirect equity interest in 14.7% of the Project, is in a new
joint venture holding company alongside funds managed by Equitix
Limited (representing 25.3% of the equity). The other equity
partners in the Project comprise Statoil ASA (40%) and Green
Investment Group, managed by Macquarie Group (20%).
The Project originally developed by Statoil, has an established
operating history following its commissioning in 2012 and comprises
88 Siemens 3.6MW turbines. It earns revenues predominantly from the
sale of Renewables Obligation Certificates, at a rate of 2.0 ROCs
per MWh until 2032, and from wholesale power sales. The Project has
long-term power purchase agreements in place. The Project further
benefits from a long-term O&M contract with Statoil.
TRIG's investment has been financed from a drawdown of the
Group's revolving acquisition facility (which is now approximately
GBP106m drawn). The joint venture holding company has structured
financing in place with term loans arranged by National Australia
Bank and Goldman Sachs with a loan-to-value of approximately 63%.
The loans are fully amortising within the subsidy period. The
underlying wind farm has no additional leverage.
TRIG's portfolio now consists of 57 projects and will have an
aggregate net output capacity (pro rata to its equity interests in
the underlying project) of approximately 820MW also taking into
account TRIG's Broxburn energy storage project which is expected to
complete in April 2018.
TRIG's Investment Manager, InfraRed Capital Partners, and its
Operations Manager, RES, are experienced in developing and
investing in offshore wind in the UK and Continental Europe. The
investment in Sheringham Shoal adds to the diversification of
Company's portfolio and will further enhance TRIG's ability to
source and execute additional investments in the expanding and
maturing offshore wind market.
Helen Mahy CBE, Chairman of TRIG, said:
"The Board of TRIG is delighted to conclude the Company's first
investment in offshore wind, an industry in which the UK has built
a leading global market share and which is expected to contribute a
significant proportion of the UK's renewable energy capacity
build-out in the medium-term.
In the last few years TRIG and its Managers have evaluated
several projects in the offshore wind sector, which has matured
into a highly sought-after institutional investment category.
TRIG's partnership on Sheringham Shoal, alongside investors with
significant experience in renewables and in broader energy markets,
represents an ideal first step for TRIG in this space. The project
is accretive to TRIG's portfolio returns and has the higher 2.0
ROCs per MWh subsidy and a proven operating history."
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Richard Crawford
Matt Dimond
Tulchan Communications +44 (0) 20 7353 4200
Martin Pengelley
Latika Shah
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 6.40 pence per Ordinary
Share for the year to 31 December 2017.
TRIG is invested in a portfolio of 57 renewables projects
(including wind, solar PV and power storage projects) in the UK,
France and the Republic of Ireland, with aggregate net output
capacity of 820MW following completion of construction of the 20MW
Broxburn project. 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 and Sydney. With over 130 professionals it manages
in excess of USD10 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 70
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. Besides the current investment by TRIG in
the Sheringham Shoal offshore wind farm, InfraRed has advised its
private equity infrastructure funds on their investment alongside
an international consortium in the development of a 396MW offshore
wind development in Germany, Merkur Offshore.
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 long-standing
signatory of the Principles of Responsible Investment under which
InfraRed is rated A+, the highest level, for both infrastructure
and real estate, as well as for overall strategy and
governance.
Further details can be found on InfraRed's website at
www.ircp.com.
Operations Manager
TRIG's Operations Manager is RES (Renewable Energy Systems
Limited), the world's largest independent renewable energy
company.
RES has been at the forefront of wind energy development for 35
years, with the expertise to develop, engineer, construct, finance,
and operate projects around the globe. RES has developed or
constructed more than 250 wind, solar, energy storage and
transmission projects totalling over 13GW in capacity. It has been
working in the offshore wind sector since 2001 and is currently
involved the development, construction and/or operation of 6GW of
offshore wind assets worldwide. Headquartered in Hertfordshire, UK,
RES operates in 10 countries and has over 1,900 employees engaged
in renewables globally.
Further details can be found on RES' website at
www.res-group.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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