24th Jun 2015 09:07
LONDON (Alliance News) - The Renewables Infrastructure Group Ltd on Wednesday said it has struck a deal to invest in a portfolio of six wind farms in the UK under an agreement with Fred Olsen Renewables Ltd.
Renewables Infrastructure will invest GBP246 million in the portfolio, which covers six operating onshore wind farm project in Scotland with a total of 433 megawatt of generating capacity.
The acquisition includes a 49% equity interest in the project and 100% of a mezzanine-level loan to back the deal.
It has been funded from existing cash resources at Renewables Infrastructure, plus the drawdown of its expanding acquisition facility with Royal Bank of Scotland and National Australia Bank. In order to repay a portion of the facility, the company intends to launch an equity issue.
Later Wednesday, the company said it will issue new shares to institutional investors at 105.0 pence per share under a placing, with the proceeds to be used towards reducing the amount drawn under the acquisition facility used to partially fund the acquisition. Renewables said up to 142.5 million share remain available under its share issuance programme.
"We are delighted to announce this major investment by TRIG and to be partnering with Fred. Olsen Renewables, a leading developer of UK and Nordic wind energy projects, who has developed these six high quality operational wind farms," said Richard Crawford, infrastructure director with InfraRed Capital Partners, the investment manager for Renewables Infrastructure.
Renewables Infrastructure shares were down 0.2% to 106.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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