This announcement has been determined to contain inside
information for the purposes of the market abuse regulation (EU)
No.596/2014.
1 August 2024
The Renewables Infrastructure Group
Limited
"TRIG" or "the Company", a
London-listed investment company advised by InfraRed Capital
Partners ("InfraRed") as Investment Manager and Renewable Energy
Systems ("RES") as Operations Manager.
Disposal of 15.2% stake in Gode offshore wind farm and
commencement of share buyback programme
· Sale
of 15.2% stake in Gode offshore wind farm for €100m at a 9% premium
to carrying value
· Disposals agreed during the past 12 months together total
£210m of proceeds across four transactions at an average 11%
premium to carrying value
· Continued disciplined approach to capital allocation, enabling
both reduction in floating rate borrowings and commencement of £50m
buyback programme
Disposal of 15.2% stake in Gode
offshore wind farm
TRIG announces the sale of a 15.2%
equity interest in the 330MW Gode offshore wind farm in Germany for
a consideration of €100m to funds managed by Equitix Investment
Management Ltd, subject to clearances and consents. The sale is at
a 9% premium to the valuation of the wind farm as at 31 December
2023. TRIG will continue to own a 9.8% stake in the wind
farm.
Once completed, TRIG's disposals
over the past 12 months, as part of the Managers' active approach
to portfolio management, will have raised a total of £210m at an
average 11% premium to carrying value.
Capital allocation update and share
buyback programme
In February 2024 as part of the 2023
Annual Results, the TRIG Board announced that it was prioritising
the use of retained cash and proceeds from asset sales to reduce
TRIG's floating rate borrowings under the Company's Revolving
Credit Facility ("RCF") to c. £150m during 2024.
Drawings under the RCF as at 30 June
2024 were £334m. Proceeds from the sales of Pallas onshore wind
farm (announced on 12 March 2024) and the 15.2% equity interest in
Gode are expected to be received in H2 2024 and would reduce TRIG's
RCF borrowings to c. £195m.
Given the significant progress made
in respect of TRIG's capital allocation priorities and the
attractive investment opportunity presented by TRIG's shares
trading at a significant discount to the Company's Net Asset Value,
the Board has allocated up to £50m to a 12-month share buyback
programme that will commence following the release of the 2024
Interim Results.
Based on current cash flow
projections, divestments agreed to date, and assuming that c. £25m
of the buyback programme is completed in 2024, RCF drawings would
reduce from £364m at 31 December 2023 to c.£220m at 31 December
2024. The Investment Manager is progressing additional disposals as
well as portfolio-level financing opportunities to enable the
reduction of RCF drawings further, and to create greater capacity
for future investment activities.
Richard Morse, Chair
said:
"The disposals secured by the
Managers both enhance TRIG's NAV and create headroom for future
growth. As part of our commitment to prudent capital allocation,
the Managers continue to appraise attractive investment
opportunities, which include share buybacks, and progress selective
disposals.
"Considering the Company's strong
balance sheet and with the share price trading at a significant
discount to the Company's NAV, TRIG's shares represent a compelling
investment opportunity. The Board has therefore decided to commence
a £50m share buyback programme, providing shareholders with
immediate NAV per share accretion."
Minesh Shah, InfraRed
said:
"We are pleased with the partial
sale of our stake in Gode at a healthy premium to the most recent
valuation. Over the past 12 months, we have successfully sold
stakes in seven assets for a total of £210m. These sales were
agreed at an average 11% premium above the assets' respective
valuations, which continues to underscore the disconnect between private and public market valuations for
renewables infrastructure."
Enquiries
InfraRed Capital Partners
Limited
+44 (0) 20 7484 1800
Minesh Shah
Phil George
Mohammed Zaheer
Brunswick
+44 (0) 20 7404 5959 / TRIG@brunswickgroup.com
Mara James
Investec Bank
Plc
+44 (0) 20 7597 4000
Lucy Lewis
Tom Skinner
BNP
Paribas
+44 (0) 20 7595 9444
Virginia Khoo
Carwyn Evans
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 invested in a portfolio of
wind, solar and battery storage projects across six countries in
Europe with aggregate net generating capacity of 2.8GW; enough
renewable power for 1.9 million homes and to avoid 2.3 million
tonnes of carbon emissions per annum. 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
InfraRed Capital Partners is an
international infrastructure investment manager, with more than 190
professionals operating worldwide from offices in London, New York,
Sydney, Seoul and Madrid. Over the past 25 years, InfraRed has
established itself as a highly successful developer and custodian
of infrastructure assets that play a vital role in supporting
communities. InfraRed manages US$13bn of equity capital1
for investors around the globe, in listed and private funds across
both income and capital gain strategies.
A long-term sustainability-led
mindset is integral to how InfraRed operates as it aims to achieve
lasting, positive impacts and deliver on its vision of Creating
Better Futures. InfraRed has been a signatory of the Principles of
Responsible Investment since 2011 and has achieved the highest
possible PRI rating2 for its infrastructure business for
seven consecutive assessments, having secured a 5-star rating for
the 2023 period3. It is also a member of the Net Zero
Asset Manager's Initiative and is a TCFD supporter.
InfraRed is part of SLC Management,
the institutional alternatives and traditional asset management
business of Sun Life. InfraRed represents the infrastructure equity
arm of SLC Management, which also incorporates BentallGreenOak, a
global real estate investment management adviser, and Crescent
Capital, a global alternative credit investment asset
manager.
Further details can be found on
InfraRed's website at www.ircp.com.
1. Uses 5-year
average FX as at 31st March 2024 of GBP/USD of 1.2839; EUR/USD
1.1179. EUM is USD 12.927m .
2.
Principles for Responsible Investment ("PRI")
ratings are based on following a set of Principles, including
incorporating ESG issues into investment analysis, decision-making
processes and ownership policies. More information is available
at https://www.unpri.org/about-the-pri.
3.
In the 2023 Principles for Responsible Investment
("PRI") assessment, InfraRed achieved a 5 star rating for the
Policy Governance and Strategy and Infrastructure and a 4 star
rating for the newly created Confidence Building Measures. Please
find InfraRed's report available for download on our website
here: https://www.ircp.com/sustainability/
Operations Manager
TRIG's Operations Manager is RES
("Renewable Energy Systems"), the world's largest independent
renewable energy company.
RES is the world's largest
independent renewable energy company, working across 24 countries
and active in wind, solar, energy storage, biomass, hydro, green
hydrogen, transmission, and distribution. An industry innovator for
over 40 years, RES has delivered more than 24GW of renewable energy
projects across the globe and plans to bring more than 22GW of new
capacity online in the next five years.
As a service provider, RES has the
skills and experience in asset management, operations and
maintenance (O&M), and spare parts - supporting 41GW of
renewable assets across 1,300 sites. RES brings to the market a
range of purposeful, practical technology-based products and
digital solutions designed to maximise investment and deployment of
renewable energy. RES is the power behind a clean energy future
where everyone has access to affordable zero carbon energy bringing
together global experience, passion, and the innovation of its
4,500 people to transform the way energy is generated, stored and
supplied.
Further details can be found on the
website at www.res-group.com.