InfraRed, RES fund raises £300m

The Renewables Infrastructure Group’s IPO was oversubscribed. It will now acquire a 276MW wind and solar PV portfolio.

Having announced its intention to list on the London Stock Exchange last month, The Renewables Infrastructure Group (TRIG) has raised £300 million (€348 million; $460 million) from its initial public offering.

TRIG said the proceeds of the oversubscribed offering would be used to acquire a 276-megawatt (MW) portfolio of 14 onshore wind farms and four solar photovoltaic (PV) plants in the UK, France and Ireland.

The fund also has an option to acquire a 16.1MW onshore wind farm in France on completion of grid connection and testing, which is expected to happen this autumn.

TRIG will be managed on a day-to-day basis by InfraRed Capital Partners, the HSBC spinout which has 15 real estate and infrastructure funds under management including the listed, £1.5 billion HICL Infrastructure Company.

Renewable Energy Systems (RES), a UK-based renewable energy developer, has been appointed operations manager of TRIG. RES ended up taking its minimum subscription of 5 percent of the issued share capital of TRIG as a result of the oversubscription.

Helen Mahy, non-executive chairman of TRIG, hailed “one of the largest investment company launches in recent years” and said that the firm’s “portfolio of high quality operational onshore wind and solar PV generation assets will provide investors with the potential to secure an attractive long term, stable, inflation-linked yield”.

According to a previous statement, the fund will target an initial annual dividend of 6 pence per ordinary share with the aim of increasing it in line with inflation over the medium term, and an internal rate of return of 8 to 9 percent net of fees and expenses over the longer term.