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TRIG more than doubles target on latest share issue

The London-listed fund has raised £110m, to be deployed into a pipeline that includes an onshore wind farm and a battery storage project.

The Renewables Infrastructure Group has collected £110 million ($137 million; €128 million) through a share issuance on the London Stock Exchange, beating the £50 million target it set when it announced the equity raise last week.

The transaction, which the UK-listed fund described as “materially oversubscribed”, saw TRIG sell about 107 million shares at 103 pence each. Demand was “scaled back substantially” to settle on the final £110 million, the fund said.

The proceeds will be deployed into new assets, helping TRIG close two deals it has already announced. These include a 30.6MW wind farm in Powys, Wales, a project which has no debt financing and is eligible for the UK government’s Renewable Obligation Certificate credits.

The fund is also expected to close on its acquisition of an energy storage project under construction in West Lothian, Scotland, in the first half of this year. RES is currently developing the facility after it was tendered by National Grid last May, the first of its kind to secure a frequency response contract in the UK.

The larger-than-expected equity raise is likely to reduce the amount TRIG will draw from the £150 million acquisition facility it has with the Royal Bank of Scotland and National Australia Bank, which it planned to use to finance the balance.

The news comes as UK listed funds continue to be propelled by investors’ appetite for yield. Earlier this week, Foresight Solar Fund raised gross proceeds of £78.5 million, exceeding its £50 million initial target and bumping its market capitalisation to £446 million, based on the issue price.

BlackRock subscribed for 25.2 million new shares, raising its holding to 58.49 million shares, equivalent to a stake of 14.1 percent.