REG - Octopus Renewables - Sale of Polish Wind Farms

Octopus Renewables Infrastructure TrustAnnouncement

06/10/2023 07:00

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RNS Number : 8847O  Octopus Renewables Infra Trust PLC  06 October 2023

6 October 2023

 

LEI: 213800B81BFJKWM2JV13

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION EU 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

 

Octopus Renewables Infrastructure Trust plc

("ORIT", the "Company")

 

Sale of Polish Wind Farms

 

Octopus Renewables Infrastructure Trust plc has entered into a conditional
agreement to sell the Krzecin and Kuslin onshore wind farms in Poland to an
affiliate of ORLEN S.A. ("ORLEN") (the "Transaction").

 

On completion of the Transaction, ORIT expects to receive net proceeds,
following the repayment of asset level debt and termination of hedging
arrangements, of between PLN 470 million and PLN 490 million (equivalent to
approximately £88 million to £92 million). This represents a 14 to 19%
premium over the holding value of the Krzecin and Kuslin wind farms of £77
million as at 30 June 2023. Completion of the Transaction is expected to
realise an IRR of 25 to 30% over the lifetime of ORIT's investment.

 

ORIT acquired the Krzecin and Kuslin wind farms when they were in the
construction phase in October 2021. The Company managed the construction of
the two wind farms, successfully bringing them into operation in 2022. The two
sites have a combined capacity of 59 MW, generating enough green power for
well over 100,000 homes and avoiding the equivalent of 150,000 tonnes of
carbon dioxide emissions every year.

 

The purchaser, ORLEN, is a Polish-based listed multi-energy company and in
connection with the Transaction, ORLEN has agreed to provide a loan to repay
the existing bank debt secured against the Krzecin and Kuslin wind farms.

 

This accretive sale demonstrates the strength of the Company's net asset value
and strong buyer appetite for renewable energy assets as the Investment
Manager continues to actively manage the Company's portfolio. The sale forms
part of the Company's announced strategy to release capital through the sale
of a small number of assets. The proceeds will initially be used to repay
short term debt facilities and may subsequently be reinvested in projects that
offer further opportunities for capital growth and greater impact through
building more new renewable energy projects like wind and solar farms.

 

Completion of the Transaction is subject, inter alia, to competition
approvals, which are expected within the next 2-6 months.

 

Phil Austin, Chairman of Octopus Renewables Infrastructure Trust plc,
commented: "ORIT is committed to making a positive impact through investing in
renewable assets which help accelerate the transition to net zero. Building
new wind farms, like these two in Poland, has brought more vital green energy
onto the system. The Company has demonstrated its ability to manage the
construction of these renewable energy projects, successfully delivering
capital growth for investors, proving its ability to sell assets at an
attractive valuation.

 

As the Company's portfolio becomes increasingly weighted towards operational
assets, selling some of these now and paying down short term debt will then
give ORIT the ability to explore new opportunities to build more green energy
projects. This creates even greater scope for capital growth alongside ORIT's
income, and to continue making a difference by rapidly accelerating the green
energy transition."

 

For further information please contact:

 

 Octopus Energy Generation (Investment Manager)                                  Via Buchanan

 Chris Gaydon, David Bird

 Peel Hunt (Broker)                                                              020 7418 8900

 Liz Yong, Luke Simpson, Huw Jeremy (Investment Banking)

 Alex Howe, Chris Bunstead, Ed Welsby, Richard Harris, Michael Bateman (Sales)

 Buchanan (Financial PR)                                                           020 7466 5000

 Charles Ryland, Hannah Ratcliff, George Beale

 Apex Listed Companies Services (UK) Limited (Company Secretary)                  020 3327 9720

 

 

Notes to editors

 

About Octopus Renewables Infrastructure Trust

 

Octopus Renewables Infrastructure Trust ("ORIT") is a premium-listed,
closed-ended investment company incorporated in England and Wales focused
on providing investors with an attractive and sustainable level of income
returns, with an element of capital growth, by investing in a diversified
portfolio of renewable energy assets in Europe and Australia. As an impact
fund, ORIT is helping accelerate the transition to net zero by investing in
green energy, whilst also contributing to a broader set of UN Sustainable
Development Goals through its impact initiatives. ORIT's investment manager is
Octopus Energy Generation.

 

Further details can be found at www.octopusrenewablesinfrastructure.com
(http://www.octopusrenewablesinfrastructure.com/)

 

About Octopus Energy Generation

 

Octopus Energy Generation is driving the renewable energy agenda by building
green power for the future. Its London-based, leading specialist renewable
energy fund management team invests in renewable energy assets and broader
projects helping the energy transition, across operational, construction and
development stages. The team was set up in 2010 based on the belief that
investors can play a vital role in accelerating the shift to a future powered
by renewable energy. It has a 12-year track record with approximately £6.0
billion of assets under management (AUM) (as of March 2023) across 13
countries and total 3.2GW. These renewable projects generate enough green
energy to power 2.3 million homes every year, the equivalent of taking over
1.2 million petrol cars off the road. Octopus Energy Generation is the trading
name of Octopus Renewables Limited.

 

Further details can be found at www.octopusenergygeneration.com
(http://www.octopusenergygeneration.com/)

 

 

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