Sale of Polish Wind Farms
6 October 2023
LEI: 213800B81BFJKWM2JV13
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.
Octopus Renewables Infrastructure Trust plc
("ORIT", the "Company")
Sale of Polish Wind Farms
Octopus Renewables Infrastructure Trust plc has entered into a conditional agreement to sell the Krzecin and Kuslin onshore wind farms in Poland to an affiliate of ORLEN S.A. ("ORLEN") (the "Transaction").
On completion of the Transaction, ORIT expects to receive net proceeds, following the repayment of asset level debt and termination of hedging arrangements, of between PLN 470 million and PLN 490 million (equivalent to approximately £88 million to £92 million). This represents a 14 to 19% premium over the holding value of the Krzecin and Kuslin wind farms of £77 million as at 30 June 2023. Completion of the Transaction is expected to realise an IRR of 25 to 30% over the lifetime of ORIT's investment.
ORIT acquired the Krzecin and Kuslin wind farms when they were in the construction phase in October 2021. The Company managed the construction of the two wind farms, successfully bringing them into operation in 2022. The two sites have a combined capacity of 59 MW, generating enough green power for well over 100,000 homes and avoiding the equivalent of 150,000 tonnes of carbon dioxide emissions every year.
The purchaser, ORLEN, is a Polish-based listed multi-energy company and in connection with the Transaction, ORLEN has agreed to provide a loan to repay the existing bank debt secured against the Krzecin and Kuslin wind farms.
This accretive sale demonstrates the strength of the Company's net asset value and strong buyer appetite for renewable energy assets as the Investment Manager continues to actively manage the Company's portfolio. The sale forms part of the Company's announced strategy to release capital through the sale of a small number of assets. The proceeds will initially be used to repay short term debt facilities and may subsequently be reinvested in projects that offer further opportunities for capital growth and greater impact through building more new renewable energy projects like wind and solar farms.
Completion of the Transaction is subject, inter alia, to competition approvals, which are expected within the next 2-6 months.
Phil Austin, Chairman of Octopus Renewables Infrastructure Trust plc, commented: "ORIT is committed to making a positive impact through investing in renewable assets which help accelerate the transition to net zero. Building new wind farms, like these two in Poland, has brought more vital green energy onto the system. The Company has demonstrated its ability to manage the construction of these renewable energy projects, successfully delivering capital growth for investors, proving its ability to sell assets at an attractive valuation.
As the Company's portfolio becomes increasingly weighted towards operational assets, selling some of these now and paying down short term debt will then give ORIT the ability to explore new opportunities to build more green energy projects. This creates even greater scope for capital growth alongside ORIT's income, and to continue making a difference by rapidly accelerating the green energy transition."
For further information please contact:
|
Octopus Energy Generation (Investment Manager) Chris Gaydon, David Bird
|
Via Buchanan |
|
Peel Hunt (Broker) Liz Yong, Luke Simpson, Huw Jeremy (Investment Banking) Alex Howe, Chris Bunstead, Ed Welsby, Richard Harris, Michael Bateman (Sales)
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020 7418 8900 |
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Buchanan (Financial PR) Charles Ryland, Hannah Ratcliff, George Beale
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020 7466 5000 |
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Apex Listed Companies Services (UK) Limited (Company Secretary) |
020 3327 9720 |
Notes to editors
About Octopus Renewables Infrastructure Trust
Octopus Renewables Infrastructure Trust ("ORIT") is a premium-listed, closed-ended investment company incorporated in England and Wales focused on providing investors with an attractive and sustainable level of income returns, with an element of capital growth, by investing in a diversified portfolio of renewable energy assets in Europe and Australia. As an impact fund, ORIT is helping accelerate the transition to net zero by investing in green energy, whilst also contributing to a broader set of UN Sustainable Development Goals through its impact initiatives. ORIT's investment manager is Octopus Energy Generation.
Further details can be found at www.octopusrenewablesinfrastructure.com
About Octopus Energy Generation
Octopus Energy Generation is driving the renewable energy agenda by building green power for the future. Its London-based, leading specialist renewable energy fund management team invests in renewable energy assets and broader projects helping the energy transition, across operational, construction and development stages. The team was set up in 2010 based on the belief that investors can play a vital role in accelerating the shift to a future powered by renewable energy. It has a 12-year track record with approximately £6.0 billion of assets under management (AUM) (as of March 2023) across 13 countries and total 3.2GW. These renewable projects generate enough green energy to power 2.3 million homes every year, the equivalent of taking over 1.2 million petrol cars off the road. Octopus Energy Generation is the trading name of Octopus Renewables Limited.
Further details can be found at www.octopusenergygeneration.com
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