15th Jan 2021 09:06
(Alliance News) - Renewables Infrastructure Group Ltd on Friday announced it has exchanged contracts to acquire a 18% stake in the Beatrice offshore wind farm in the UK from Copenhagen Infrastructure Partners for an undisclosed amount.
The FTSE 250-listed renewable energy-focused investor said Beatrice is a 588 megawatts wind farm developed by Perth, Scotland-based electricity utility SSE PLC, located 13 kilometres off the north east coast of Scotland. It uses 84 Siemens AG seven-megawatts turbine as part of a 15-year maintenance agreement with the German industrial manufacturing company.
Renewables Infrastructure said the investment, which is subject to regulatory and lender consents that are expected to be received in the coming weeks, will be financed from a drawdown of its recently renewed revolving credit facility. The GBP500 million facility is available to it for a three-year term, and the interest will be charged in respect of the renewed facility is linked to the company's environmental, social & governance performance.
Once the acquisition has completed, Beatrice will represent 12% of the company's investment portfolio.
Renewables Infrastructure said following completion, SSE will own a 40% stake in the wind farm. Funds managed by Equitix Investment Management Ltd also are acquiring an 18% stake from Copenhagen Infrastructure and are partnered with Renewables Infrastructure on the Sheringham Shoal offshore wind farm. Additionally, Red Rock Power Ltd will own a 25% stake.
"As investment manager, InfraRed seeks attractive opportunities for Renewables Infrastructure that increase the robustness of the portfolio, helping to deliver sustainable returns to shareholders from a diversified portfolio of renewables infrastructure. This major acquisition represents a continuation of this investment strategy and will be the company's third investment in a UK offshore wind farm and its fifth in the offshore wind sector," said Richard Crawford of InfraRed Capital Partners.
Shares in Renewables Infrastructure were down 0.6% at 125.44 pence in London on Friday.
By Zoe Wickens; [email protected]
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