3rd Oct 2019 13:18
(Alliance News) - Renewables Infrastructure Group Ltd on Thursday said it raised GBP227.6 million through the issue of 185.0 million shares at 123 pence per share.
Shares in the company were 1.1% higher at 127.20 pence each in London on Thursday afternoon.
The renewable energy-focused investor said said the issue was "heavily oversubscribed" and it was forced to scale back applications.
The 185.0 million shares represented all the stock that was left available as part of the company's share issuance programme, which it put in place in March.
The proceeds will be used to repay drawn down amounts from a loan facility with three lenders.
Renewables Infrastructure has drawn down roughly GBP80.0 million from a credit facility with Royal Bank of Scotland PLC, National Australia Bank Ltd, and ING Group NV which it entered to fund acquisitions.
The cash raised will also be used to fund further investments. The investor has commitments of roughly GBP140.0 million to complete the construction of the Erstrask and Solwaybank wind farms in Sweden and Scotland, respectively.
Chair Helen Mahy said: "My board and I would like to thank our existing and new shareholders for their support in this fund raising. The significant oversubscription of the placing, which follows a similarly successful issue in March, demonstrates ongoing support for our strategy and for the company's purpose to generate sustainable returns from a diversified portfolio of renewables infrastructure that contributes towards a zero-carbon future."
In September, Renewables Infrastructure said it will propose a change in its investment policy to shareholders at a general meeting.
The company said wants to increase the amount of non-UK investments allowed to 65% of the portfolio. Its current policy does not allow for more than 50% of non-UK investments.
The investor said European renewable markets have "continued to evolve" and a number of countries where it has already invested in, including France and Germany, have "robust" government support for onshore wind and solar projects.
Renewables Infrastructure will pitch the policy change to shareholders at an October meeting.
By Eric Cunha; [email protected]
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