REG - Renew Infra Grp Ld - Disposal of three onshore wind farms

Renewables InfrastructureAnnouncement

21/08/2023 07:00

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RNS Number : 8277J  Renewables Infrastructure Grp (The)  21 August 2023

 

 

21 August 2023

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 three onshore wind farms

TRIG has exchanged contracts to sell three wind farms in the Republic of
Ireland for a combined consideration of c. €25m (the "Disposal") to
Statkraft. This represents a 26% premium to the valuation of the wind farms as
at 31 December 2022 1 . The Disposals are subject to ordinary course
clearances.

The Disposal is for 100% of TRIG's equity interest in three older onshore wind
farms (the "Projects"), with an aggregate capacity of 35MW, that are nearing
the end of their expected lives. The profit on disposal reflects the
development opportunity available to the buyer for life extension and
repowering.

Active management of the Projects by RES, the Operations Manager, has improved
operational performance. Value enhancement measures included the proactive
monitoring and refurbishing of parts to reduce costs and minimise downtime;
installation of equipment and software for control and condition monitoring
which enhances performance; and the optimisation of power purchase agreement
terms to improve revenues.

During TRIG's ownership, which has been for approximately ten years, the
Projects generated enough clean energy to avoid c. 300,000 tonnes of carbon
emissions.

Richard Crawford, Head of Energy Income Funds at InfraRed said:

"Balance sheet discipline is crucial in a challenging macro-economic
environment. These accretive disposals underline the quality of the Company's
portfolio. We remain confident in TRIG's long-term strategy and continue to
actively seek ways to deliver value for shareholders through capital
allocation."

Enquiries

InfraRed Capital Partners Limited
+44 (0) 20 7484 1800

Richard Crawford

Phil George

Minesh Shah

Mohammed Zaheer

 

Brunswick
+44 (0) 20 7404 5959 / TRIG@brunswickgroup.com
(mailto:TRIG@brunswickgroup.com)

Mara James

 

Investec Bank Plc
                                               +44
(0) 20 7597 4000

Lucy Lewis

Tom Skinner

Denis Flanagan

 

BNP Paribas
                                                       +44
(0) 20 7595 9444

Virginia Khoo

Carwyn Evans

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 over
2.8GW; enough renewable power for 1.9 million homes and to avoid over 2.4
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
(http://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 and Seoul. 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$14bn+ of equity capital(1) 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
rating(2) for its infrastructure business for seven consecutive assessments,
having secured a 5 star rating for the 2021 period. 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.

www.ircp.com (http://www.ircp.com/)

 

(1) Data as at Q4 2022. Equity Capital is calculated using a 5-year average FX
rate.

 

(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
(https://www.unpri.org/about-the-pri)

 

Operations Manager

TRIG's Operations Manager is RES ("Renewable Energy Systems"), the world's
largest independent renewable energy company.

RES has been at the forefront of wind energy development for over 40 years,
with the expertise to develop, engineer, construct, finance and operate
projects around the globe. RES has developed or constructed onshore and
offshore wind, solar, energy storage and transmission projects totalling more
than 23GW in capacity. RES supports over 12GW of operational assets worldwide
for a large client base. Headquartered in Hertfordshire, UK, RES is active in
11 countries and has over 2,500 employees engaged in renewables globally.

RES is an expert at optimising energy yields, with a strong focus on safety
and sustainability. Further details can be found on the website
at www.res-group.com (http://www.res-group.com/) .

 1  The most recent audited valuation, adjusted for cash distributions
received since 31 December 2022.

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