Scott Wright
Group business correspondent
THE Renewables Infrastructure Group (TRIG) has acquired a significant
minority stake in six operational wind farms in Scotland in a deal worth
£246 million, boosting its capacity by nearly 50 per cent.
The deal gives TRIG a 49 per cent equity interest in a subsidiary of
Norway’s Fred.Olsen Renewables, which has developed the farms in four
locations across Scotland.
Three of the wind farms are located in Moray, two are in East Lothian and
one is in Aberdeenshire.
Their arrival swells the portfolio of 36 onshore wind and solar
photovoltaic projects which TRIG has invested in across the UK, France and
the Republic of Ireland.
The additions increase the net generating capacity of TRIG’s portfolio by
48 per cent to 658 MW (Megawatts).
The deal includes a 100 per cent mezzanine-level loan of £89m, which is
designed to ensure the company meets its dividend commitments over the next
few years.
The loan will amortise in full in January 2021.
TRIG has funded the investment from its own cash balances and by drawing
down an expanded acquisition facility with Royal Bank of Scotland and
National Australia Bank.
However it launched a fresh share offer yesterday to reduce the amount
drawn under the facility to partially fund the acquisition.
TRIG said it will place up to 142.5 million new ordinary shares at a price
of 105p under its share issuance programme. At that price the placing could
raise up to £149.6m.
The new shares will have the same status as existing shares, meaning new
investors will have the right to receive the target interim dividend of
3.08p per ordinary share for the six months ending June 30.
The share issuance programme is expected to close on around July 9.
A spokeswoman for TRIG said the projects the company has invested in are
unaffected by the UK Government’s recent decision to cut subsidies for
onshore wind farms. All will continue to benefit from 20-year subsidies
under the UK Renewables Obligation incentive programme.
Meanwhile, Scottish energy minister Fergus Ewing has invited UK energy
secretary Amber Rudd counterpart to discuss the impact of Downing Street’s
decision to end onshore wind subsidies under the Renewables Obligation.
There are fears the move could cost Scotland 3000 jobs and £3bn of
investment. Ms Rudd has said there were enough subsidised wind schemes to
meet renewable energy commitments.
Shares in TRIG closed down 0.5p at 105.75p.
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