Investment in a portfolio of French solar projects

RNS Number : 8229K

Renewables Infrastructure Grp (The)

05 January 2016

 



5 January 2016

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)

Investment in a portfolio of French solar projects alongside Akuo Energy

·      TRIG has exchanged contracts to invest €57 million (approx. £42 million) in a portfolio of 15 French solar ground-mounted and rooftop PV projects, alongside Akuo Energy ("the Transaction")

·      The Transaction increases TRIG's portfolio net generating capacity* by approximately 22MW to 680MW

·      The Projects are located in mainland France, Corsica and overseas departments, with revenues wholly derived from French feed-in tariffs without exposure to power price market fluctuations for an average of 16 years from acquisition

·      The Transaction increases TRIG's solar PV projects to approximately 30% of overall portfolio value and the portion of non-UK projects in the portfolio to approximately 13%

·      The Transaction continues TRIG's strategy of investing in long-term income-producing operating projects diversified by geography, power market and technology

* Net generating capacity is expressed pro rata to TRIG's equity interests in the Projects.

Richard Crawford, Director - Infrastructure at InfraRed Capital Partners, Investment Manager to TRIG, said: "TRIG's new partnership with Akuo Energy expands its French power production and further diversifies the Company's portfolio. The transaction adds attractive, highly predictable revenue streams to TRIG through the French feed-in tariff mechanism at a time when the volume of solar opportunities in the UK is expected to decline with the reductions in government support programmes."

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The Board of TRIG is pleased to announce that an agreement has been reached between the Company and Akuo Energy Group ("Akuo") on terms for an investment in a portfolio of 15 operating (brownfield) French solar photovoltaic (PV) projects ("the Projects") alongside Akuo, one of France's leading independent renewable energy producers.

The Transaction comprises the purchase of a 49% equity interest in a portfolio holding company together with a mezzanine-level loan. The total consideration for the Transaction is €57 million (approximately £42 million) which is being funded from the Group's acquisition facility with Royal Bank of Scotland plc and National Australia Bank Limited. As a significant equity partner in the Projects, TRIG will have shareholder rights appropriate for investments of this nature. Completion of the Transaction is subject to project lender consents expected in January 2016. RES, TRIG's portfolio operations manager, will represent TRIG on the supervisory board managing the portfolio. Akuo will continue to provide detailed day-to-day administration as well as operations and maintenance through its directly employed teams across the Projects.

The Projects, commissioned from December 2010 to May 2012, all benefit from power purchase agreements of up to 20 years with EDF, providing fixed, index linked revenues per MWh. They also benefit from broad geographical diversification between mainland France (3 projects, 17.9 MW gross capacity), Corsica (4 projects, 14.0 MW), La Réunion (6 projects, 12.4 MW) and Guadeloupe (2 projects, 4.5 MW) hosting 36%, 32%, 25% and 7% of net capacity respectively (pro rata to TRIG's equity interests). The portfolio holding company has controlling equity interests in the underlying projects of between 51% and 100%, investing alongside local parties in 10 of the projects. The Projects have aggregate gross generating capacity of approximately 49MW and net generating capacity (pro rata to TRIG's equity interest) of 21.7MW. Nine of the projects are ground-mounted and six are roof-mounted.

The Projects are being purchased each with long-term amortising project financing in place representing on average approximately 65% of the Projects' enterprise value reflecting the predictability of the revenue streams available under French feed-in tariffs.

The Transaction is in line with TRIG's published investment policy.

Following the completion of the Transaction, TRIG's portfolio will be comprised of 51 projects with approximately 70% of the projects by value being onshore wind and 30% being solar PV.

-Ends-

Enquiries

InfraRed Capital Partners Limited                              [phone]
Richard Crawford
Matt Dimond

Tulchan Communications                                           [phone]
Martha Walsh
Latika Shah

Canaccord Genuity Limited                                         [phone]
Andrew Zychowski
Lucy Lewis

Liberum                                                                       [phone]
Steve Pearce
Chris Clarke

NOTES TO EDITORS:

TRIG

TRIG is a leading renewable energy infrastructure company delivering long-term, stable dividends from a diversified portfolio of onshore wind and solar photovoltaic projects in the UK and Northern Europe. The Company is seeking to provide investors with long-term, stable dividends, while preserving the capital value of its investment portfolio through re-investment of surplus cash flows after payment of dividends. TRIG is targeting an aggregate dividend of 3.11 pence per Ordinary Share for the period from 1 July 2015 to 31 December 2015.

Following the Transaction, TRIG will be invested in a portfolio of 51 projects in the UK, France and the Republic of Ireland. The Group 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  or  www.trig-ltd.com/video

Akuo Energy

Akuo Energy is one of the leading French independent renewable energy power producers. Akuo Energy is present across the whole value chain, including project development, financing, construction, and operation. As of end-2015, Akuo Energy had invested EUR 1.5 billion in a total capacity of 560 MW in projects under operation and construction and more than 400 MW with financing underway. Its headquarters are located in Paris, France while it has subsidiaries in 7 other countries: Uruguay, Croatia, Poland, Turkey, Indonesia, UAE and the United States. Akuo Energy aims to have a global production capacity of 3,000 MW within 5 years. More information can be found at www.akuoenergy.com

InfraRed

TRIG's Investment Manager is InfraRed Capital Partners ("InfraRed").

InfraRed is a leading global investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, Hong Kong, New York, Paris, Seoul and Sydney. With over 100 professionals it manages in excess of USD 8 billion of equity capital in multiple private and listed funds, primarily for institutional investors across the globe.

Since its inception over 25 years ago, InfraRed has launched 15 funds, including two FTSE 250 companies listed on the London Stock Exchange: HICL Infrastructure Company Limited and The Renewables Infrastructure Group Limited. To date, six of these funds have been realised.

InfraRed has a long and successful proven track record in sourcing, structuring, acquiring, managing and financing infrastructure equity investments. Its history stretches back over 15 years to a time when it advised the UK government on its Public Private Partnership (PPP) programme. Since then, InfraRed has been responsible for over 160 infrastructure equity investments across various sectors including accommodation, education, government, health, renewables and transportation.

Since 2006, InfraRed has been actively participating in the secondary infrastructure markets, expanding its long-standing presence in the development infrastructure market.  It currently manages over 150 infrastructure assets and its renewable energy portfolio has a generation capacity of approximately 1GW.  InfraRed has c. USD 5 billion of equity invested in infrastructure projects around the globe.

InfraRed is authorised and regulated by the Financial Conduct Authority.

RES

The Operations Manager of the Group is Renewable Energy Systems Limited ("RES").

RES is one of the world's leading renewable energy companies with extensive experience in developing, financing, constructing and operating renewable energy infrastructure projects globally across a wide range of low carbon technologies including both onshore and offshore wind and solar, as well as enabling technologies such as energy storage and demand-side management.

RES has been at the forefront of wind energy development for over 30 years.  Since incorporation, RES has developed and/or constructed more than 150 individual wind farms and PV parks around the world with a combined capacity of over 10 GW.

In recognition of extraordinary business success in growing revenues from international markets, RES was awarded its second Queen's Award for Enterprise in 2013, this time for International Trade. Today, projects developed and/or built by RES are contributing to meeting the needs of a rapidly-evolving energy market and, in doing so, are actively contributing to a more sustainable world.

RES's global headcount totals over 1,200 staff based in fourteen countries across five continents.

 

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