The Renewables Infrastructure Group (TRIG) has raised £120m (€131m) from a share issue following the issue announcement on 19 May.
The net proceeds of the issue will be applied in repaying amounts drawn under TRIG’s revolving credit facility.
The facility is expected to be fully repaid with surplus cash of £70m by September 2020, allowing for the expected receipts from the partial sell down of the 396MW Merkur offshore wind farm and sale of phase one of the 229.1MW Erstrask wind farm in Sweden in the third quarter of this year.
The balance will be deployed in the acquisition of further investments and to fund the company’s commitments to construction projects of £35m that are due during the rest of 2020 and 2021.
TRIG’s share price rose by 1.5% on the back of the fund raising and has increased by 25% from March lows, said the investor.
TRIG chairman Helen Mahy said: “We are delighted with the strong support shown by our investors, and that the company’s stock remains in such high demand in these challenging times.
“We believe this is an endorsement of TRIG’s careful management and acquisition discipline, and the stability of the returns being generated from our diversified portfolio, with a large proportion of revenues coming from contracted sources.”
TRIG decided to issue 100 million new ordinary shares, raising £120m in proceeds, after “careful consideration” of its funding requirement and acquisition pipeline, and in consultation with the company’s managers, InfraRed and RES, and the joint bookrunners Investec and Liberum Capital.