TRIG returns to market for $141m

The Renewables Infrastructure Group (TRIG) has unveiled plans to raise at least £85m ($141m) – and as much as £120m – to acquire more wind and PV projects via a share issue on the London Stock Exchange.

The company, which is backed by the developer RES, also announced it has reached agreements to buy five new projects – three onshore wind farms totaling 47MW and two PV arrays totaling 30MW – that will lift its total capacity to 366MW.

TRIG raised £310.1m in a London flotation last summer, as part of a group of clean-tech IPOs that also included Greencoat UK Wind and the Bluefield Solar Income Fund.

Since then TRIG – whose investment manager is InfraRed Capital Partners and whose operations manager is RES – has acquired 20 projects, including 14 onshore wind farms in the UK< and 6 PV arrays across Britain, Ireland and France.

Last month TRG nailed down a £80m revolving acquisition facility with the Royal Bank of Scotland and National Australia Bank, which it will use to finance its purchases of the five new projects.

It will then use the money it raises through its new share issue to repay its banks.

TRIG has a Right of First Offer agreement in place with RES.

The three wind farms TRIG intends to acquire are the 25MW Taurbeg project in Ireland, the 12MW Tallentire in England, and the 10MW Meikle Carewe in Scotland. All three are currently owned by RES, while the latter two – both taken on line last year – have power purchase agreements with Statkraft.

TRIG will also buy two PV arrays in southern England totaling 30MW, which are due for completion by the end of this month – allowing them to qualify for 1.6 Renewable Obligation Certificates (ROCs) per kWh generated.

There is chance, however, that the construction timelines will slip, meaning they would only qualify for 1.4 ROCs/kWh – in which case TRIG will pay a lower price for them.

The growing geographical diversification of TRIG’s asset portfolio exposes it to a wider range of weather conditions, regulatory regimes and power markets, the company notes.

During 2013, TRIG’s wind and solar farms generated 5.3% more electricity than expected.