REG - Renew Infra Grp Ld - Offshore wind disposal & capital allocation update

Renewables InfrastructureAnnouncement

01/08/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240801:nRSA6886Ya&default-theme=true

RNS Number : 6886Y  Renewables Infrastructure Grp (The)  01 August 2024

 

 

 

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
(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, 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 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 2023 period(3). 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
(http://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
(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/
(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
(http://www.res-group.com/) .

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DISWPUBPMUPCPPG