The Renewables Infrastructure Group has announced proposals to issue up to 300m new ordinary shares (and/or c shares) in the company to take advantage of investment opportunities going forward. The proposals are conditional on the approval of shareholders at an EGM, which is currently scheduled for 4 May 2016, and the company expects to publish a prospectus by early May 2016. The company says that, following the EGM, it intends to undertake a first issue comprising a placing and an offer for subscription and that a further announcement will be made in due course.
Since its IPO in July 2013, the company’s portfolio has grown significantly and now comprises 51 operating renewable energy infrastructure projects in onshore wind and solar PV in the UK, France and Ireland, with approximately 680MW of aggregate generating capacity. Portfolio acquisitions since the IPO have typically been funded from the Company’s £150m revolving acquisition facility with Royal Bank of Scotland and National Australia Bank which has been repaid from the proceeds of subsequent equity issuance at a premium to the prevailing NAV. As at 13 April 2016, the Acquisition Facility was £43.7m drawn and, following the issue of 78 million Ordinary Shares on 17 November 2015, which closed the 2014/2015 Share Issuance programme and all but exhausted the Company’s tap authority taken at the 2015 AGM, the Company is now unable to undertake further equity issuance in meaningful amounts without the publication of a prospectus.
The company says that there is a continued flow of renewables projects from their developer-owners to new long-term owners, as well as a substantial flow of new developments underway across most of the Company’s target markets. As such, and after consideration of the company’s strategy, the Board has concluded that it is now appropriate to put in place a new share issuance programme.
The Renewables Infrastructure Group looks to raise further capital : TRIG