Acquisition of Solwaybank onshore wind farm
18 June 2018
The Renewables Infrastructure Group Limited
"TRIG" or the "Company", together with its subsidiaries "the Group", a London-listed investment company advised by InfraRed Capital Partners as Investment Manager and RES (Renewable Energy Systems) as Operations Manager.
Acquisition of Solwaybank onshore wind farm in the UK
The Board of TRIG is pleased to announce that it has acquired an onshore wind farm in the UK, Solwaybank, located in Dumfries and Galloway, Scotland. Solwaybank is in the early stages of construction and expected to become operational in Q1 2020. Once complete, Solwaybank will comprise 15 Senvion MM100 wind turbines, each with a rated capacity of 2.0MW, amounting to 30MW.
Solwaybank will be one of few onshore wind farms in the UK to benefit from the attractive Contract for Difference tariff ("CfD") which fixes the power price during the first 15 years of operations. Solwaybank has an allocated strike price of £82.50 per MWh in 2012 prices (equivalent to £91.14 in current prices).
The project was acquired from TRIG's Operations Manager, RES, pursuant to TRIG's right of first offer agreement. The total consideration for the project is expected to be approximately £82 million, including construction costs. Of this, £39 million was invested at acquisition, partly funded through a drawdown of the Group's revolving acquisition facility which now stands at £134 million drawn. The project does not have any third-party project level debt.
Following this acquisition, TRIG's construction exposure is 12% of its portfolio value, measured on a fully invested basis. By the year-end, this exposure is expected to reduce to c.7%.
The Investment Manager is evaluating a strong pipeline of investment opportunities for the Company in wind and solar assets in the UK, Ireland, France and Scandinavia.
Richard Crawford, Director, Infrastructure at InfraRed Capital Partners, said:
"Solwaybank is an important addition for the TRIG portfolio, being its first CfD wind farm in the UK. Together with the two French wind farms acquired last week, Solwaybank enhances the Company's revenue visibility as part of a balanced portfolio. The windfarm is being constructed by RES who have an impressive track record in developing and building renewable energy assets."
Ends
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Richard Crawford
Phil George
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 6.50 pence per Ordinary Share for the year to 31 December 2018.
TRIG is invested in a portfolio of 61 renewables projects (including onshore and offshore wind, solar PV and power storage projects) in the UK, France and the Republic of Ireland, with aggregate net output capacity of 938 MW following completion of its construction assets.
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.
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), 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 more than 16GW in capacity. Headquartered in Hertfordshire, UK, RES operates in 10 countries and has over 2,000 employees engaged in renewables globally.
Further details can be found on RES' website at www.res-group.com.
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