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Octopus Renewables Infrastructure seeks shareholder approval to invest more in offshore wind farms

Octopus Renewables Infrastructure seeks shareholder approval to invest more in offshore wind farms – Octopus Renewables Infrastructure (ORIT) has published a circular containing details of proposed amendments to its investment policy and notice of a general meeting to be held on 28 July 2022.

The company has proposed to seek shareholder approval to amend its investment policy to include offshore wind farms in its core investment focus, in addition to onshore wind farms and solar PV parks.

The changes, if approved, will move offshore wind from the non core technology allocation, which is limited to 20% of Gross Asset Value, to the core wind allocation, which is expected, over the long term, to make up less than 60% of the total value of all investments.

The changes will allow ORIT slightly greater flexibility to make additional offshore wind farm investments as part of its diversified portfolio.

It should be noted that

(i) the current minority allocation limit of 25% of Gross Asset Value will still be a limiting factor on investments into offshore wind farms, given typical project sizes that the manager sees in this space mean that investments would typically be made on a minority basis; and

(ii) following the proposed changes to the investment policy, over the long term investments in wind farms as a whole may be lower as a percentage of the total value of all investments of the company than they could have been under the current policy, as under the proposed changes it is expected that over the long term investments in wind farms as a whole will not exceed 60% of the total value of all investments, whereas under the current policy such investments could have been up to approximately 80% of the total value of all investments. No other changes to the investment policy are being proposed. 

Statement from the chair:

“ORIT’s portfolio has now reached significant scale, with 23 solar PV assets, 7 onshore wind assets and 1 offshore wind investment, with an aggregate total capacity of 583MW, along with three investments in developers and a number of conditional acquisitions agreed. With ORIT’s growth since IPO and offshore wind becoming a key pillar of government targets for new capacity additions, the Board and the Investment Manager believe now is the ideal time to make this amendment to allow investors the opportunity to access an even broader, more diversified range of attractive investments in established renewable generation technologies.”

ORIT : Octopus Renewables Infrastructure seeks shareholder approval to invest more in offshore wind farms

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