TRIG targets £85m fundraise

The Renewables Infrastructure Group (TRIG), a renewable energy vehicle managed by UK-based InfraRed Capital Partners, is to issue shares worth £85 million (€102 million; $141 million) on the London Stock Exchange.

The proceeds from the placing, open offer and offer for subscription will be used to fund the acquisition of five projects with a generating capacity of around 78 megawatts (MW). The size of the issue could be increased to a maximum of £120 million depending on the evolution of TRIG’s deal pipeline.

The projects currently considered, which include two solar PV and three onshore wind farms in the Uk and Ireland, will boost TRIG’s capacity by around 27 percent to 366MW. In a statement, the firm said it had also commenced discussion on more than 200MW of other potential acquisitions.

The C shares will convert into ordinary ones on a NAV for NAV basis at the time of conversion, which is scheduled to occur no later than 31 July 2014. The new ordinary shares will be entitled to the interim dividend of 3p per share which the fund is targeting to pay in September for the 6 month ending June 2014.

“In light of a good set of maiden results and demand from investors for predictable long-term yield, TRIG is raising additional equity capital. This will enable a broader range of investors to participate in TRIG with the benefits of diversification and increased share liquidity,” said Richard Crawford, a director at InfraRed.

InfraRed launched TRIG last year in partnership with industry player Renewable Energy Systems (RES). The fund, which raised £300 million through an IPO in June, target a 6 percent initial dividend yield and an IRR of 8 to 9 percent.

Its fresh fundraise comes in the wake of a flurry of similar moves by renewables ventures in the UK, with £840 million raised by the country’s top four funds’ IPOs last year.