The Renewables Infrastructure Group (TRIG) is proposing to issue new ordinary shares this month to raise money for new investments.
The British investment trust, which holds investments in assets generating electricity from renewable sources, said on 15 May 2020 that it expects to have drawings under its Revolving Credit Facility of approximately £50m by Q3 2020, together with further commitments to construction projects of around £35m due over the remainder of 2020 and 2021.
The announcement follows the completion of investments in the Merkur, Fujin and Blary Hill wind farms, and takes into account the upcoming partial sell down of Merkur and return of Erstrask Phase 1 – both expected to occur in Q3 2020.
The board notes that asset availability in the company’s operating portfolio remains good and that progress at the firm’s three construction projects remains materially on-track, notwithstanding the Covid-19 pandemic.
“In light of the attractive pipeline of suitable investment opportunities that InfraRed, the company’s investment manager, is continuing to evaluate for the company, the board believes that it is an appropriate point at which to seek to raise money through the issue of New Ordinary Shares,” TRIG said in a statement.
The net proceeds of the issue will be applied in repaying amounts drawn under the Revolving Acquisition Facility and the acquisition of further investments.
The New Ordinary Shares will be issued at a price of 120.0p per share.
The issue price represents a discount of 5.8% to the mid-market closing share price of 127.4p on 18 May 2020 and a premium of 4.35% to the last reported NAV of 115.0p (as at 31 December 2019).
On 22 April 2020, the company announced that had the December 2019 NAV been adjusted for the latest power price forecasts.
The issue will be made to qualifying investors through TRIG’s joint corporate brokers, Investec Bank and Liberum Capital.
It is expected that dealings in the New Ordinary Shares on the main market will commence, on or around 26 May 2020.