The Renewables Infrastructure Group raises £302m in massively oversubscribed fundraising
The Renewables Infrastructure Group announced on Thursday that the fundraising undertaken under the initial placing, initial open offer, initial offer for subscription and intermediaries offer it announced on 7 March had successfully completed.
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It said the initial issue was heavily oversubscribed, with applications totalling nearly three times the 150 million new ordinary shares initially available.
The FTSE 250 company said it had an “active pipeline” of investment opportunities, some of which were at an advanced stage and expected to reach completion in the near term, as well as outstanding commitments in respect of the Erstrask and Solwaybank wind farms amounting to £158m.
As a result, the board - in consultation with its investment manager InfraRed Capital Partners, operations manager RES, and the joint bookrunners, had agreed to increase the number of new shares available under the initial issue to 265 million, raising gross proceeds of £302.1m.
“Notwithstanding the upsizing of the Initial Issue, the company has had to scale back applications materially,” the board said in its statement.
It said application has been made for the 265 million new ordinary shares to be admitted trading, which was expected to become effective at 0800 BST on 1 April.
On admission, the company's issued share capital would consist of 1,444,961,346 ordinary shares with voting rights.
“The board would like to thank TRIG's existing shareholders and new investors for their support in the company's fundraising,” said The Renewables Infrastructure Group chairman Helen Mahy.
“Such significant oversubscription for this initial issue under the share issuance programme is testament not only to TRIG's demonstrable track record in delivering long-term, sustainable income but also to TRIG's commitment to decarbonisation.
“This equity issue enables us to capitalise on our exciting near-term investment pipeline and continue to deliver sustainable value to our shareholders.”
TRIG also said the refinancing of the six co-owned Scottish wind farms - Crystal Rig 1, Rothes 1, Paul's Hill, Crystal Rig 2, Rothes 2 and Mid Hill - had completed, with around £60m set to be be repaid to TRIG as a result of that refinancing.
Consistent with TRIG's approach to other term project finance debt, the board said the new debt would be repaid over each asset's subsidy period.
The debt was committed for its full duration, with no refinancing risk, and the interest was predominantly fixed via swaps, thereby limiting exposure to increasing interest rates.
TRIG said its investment manager estimated that, as at 30 June, the project-level gearing would be around 34% of enterprise value, based on the current portfolio and following the refinancing.
Following TRIG's initial investment in Ersträsk, its investment in Jädrass and a drawdown for a transaction that the company expected to close shortly, the board said TRIG’s revolving acquisition facility was currently drawn by €287m (£247m).
The net proceeds of the initial issue, and the proceeds from the refinancing, would be applied to repay amounts drawn under the revolving acquisition facility and applied towards the company's pipeline of investment opportunities, including outstanding commitments.