The Renewables Infrastructure Group (TRIG) is proposing a change to its investment policy that would allow the company to invest in more renewable energy projects in European countries outside of the UK.
TRIG is proposing to increase to 65% the investment policy limit from 50% for investments in European countries outside of the UK.
The 50% limit is “increasingly an impediment to the investment manager’s ability to source investments with the best risk-adjusted returns and construct a balanced and diversified portfolio for the company”, TRIG said.
It added that there is a “broader range and plentiful supply of projects available in mainland Europe”, while “increased diversification” would benefit TRIG’s portfolio.
“The board, having consulted with shareholders, believes that it is now appropriate to seek shareholder approval to amend the investment policy,” the company said.
TRIG added that projects in the UK will continue to be a substantial part of the company’s portfolio.
Shareholders will meet to decide on the change on 17 October.
TRIG is also proposing to issue new ordinary shares priced at £1.23 a share in order to raise money for further acquisitions and to repay money drawn under the company’s revolving acquisition facility.
The facility is with Royal Bank of Scotland, National Australia Bank and ING Bank.