Acquisition of Jadraas Wind Farm, Sweden
.
28 February 2019
The Renewables Infrastructure Group Limited
("TRIG" or the "Company", a London-listed investment company advised by InfraRed Capital Partners as Investment Manager and Renewable Energy Systems (RES) as Operations Manager)
Acquisition of Jädraås Wind Farm, Sweden
Increasing portfolio capacity to 1,323 MW
The Board of TRIG is pleased to announce that the Company has exchanged contracts to acquire a 100% interest in the Jädraås wind farm ("Jädraås"), an operational onshore wind farm with a capacity of 212.85MW for a consideration of approximately €207 million on an unlevered basis. The wind farm is located near Ockelbo, north of Stockholm and is being acquired from Arise AB and Sydvastanvind AB (controlled by Platina Energy Partners LLP). The acquisition will be funded by the Company's acquisition facility and is expected to complete in March.
Jädraås is comprised of 66 Vestas V-112 turbines of 3.225MW capacity each and has been operational since May 2013. Jädraås benefits from an all-inclusive long term O&M contract with Vestas and a strong operating track record. Jädraås will represent approximately 11% of the Company's portfolio on a committed investment basis.
Renewables in Sweden benefit from green certificates, but the substantial majority of revenues come from power sales. Jädraås has hedging agreements in place fixing power prices for 70% of expected power generation until the end of 2023, and for approximately 50% of the green certificates until the end of 2027.
Following the acquisition, 34% of TRIG's portfolio value is in assets outside the UK, measured on a committed investment basis. TRIG continues to manage its currency exposure to non-sterling assets by hedging approximately 50% of the valuation of such assets.
Richard Crawford, Director, Infrastructure at InfraRed Capital Partners, said:
"Jädraås is our second investment in Sweden and represents an expansion of our presence in the Nordic market. With power price hedging in place for most of expected generation for the next 5 years and attractive unlevered returns, this acquisition complements our existing portfolio very well, whilst increasing our exposure to one of Europe's most attractive regions for renewable energy development."
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Richard Crawford
Phil George
Tulchan Communications +44 (0) 20 7353 4200
Martin Pengelley
Toby Bates
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 6.64 pence per Ordinary Share for the year to 31 December 2019.
TRIG is invested in a portfolio of 63 onshore wind and solar PV generation projects in the UK, France, the Republic of Ireland and Sweden including the acquisition announced today, with aggregate net generating capacity in of 1,323MW. 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 150 professionals it manages in excess of USD 12 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 over 80 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.
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 signatory of the Principles of Responsible Investment.
Further details can be found on InfraRed's website at www.ircp.com.
Operations Manager
TRIG's Operations Manager is Renewable Energy Systems (RES), the world's largest independent renewable energy company.
RES has been at the forefront of wind energy development for over 35 years, with the expertise to develop, engineer, construct, finance and operate projects around the globe. RES has developed or constructed onshore and offshore wind, solar, energy storage and transmission projects totalling more than 16GW in capacity. RES' operational asset portfolio exceeds 3.5GW worldwide for a large client base. Headquartered in Hertfordshire, UK, RES is active in 10 countries and has over 2,000 employees engaged in renewables globally.
RES is an expert at optimising energy yields, with a strong focus on safety and sustainability. Further details can be found on the website at www.res-group.com.
LEI: 213800N06Q7Q7HMOMT20
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