TRIG asks for more cash
The Renewables Infrastructure Group Limited
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16:57 19/04/24
The Renewables Infrastructure Group said it wants to raise £5m to pay down debt and allow it to acquire assets from its "attractive pipeline".
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FTSE 250-listed TRIG, which owns 61 operating onshore and offshore wind, solar PV and battery storage projects in the UK, France and Ireland, said its net asset value had increased to 107.8p per share by the end of September, up from 105.2p at the end of June thanks to changes in forecast power prices. Wind speeds have remained below long-term averages, though the sunnier weather has boosted solar operations.
TRIG plans to convene a shareholder meeting to get permission to issue 52.8m new shares, around 4.8% of its current share capital, via further 'tap' issues. Directors reiterated that these tap issues are only undertaken at a premium to the prevailing estimated NAV per share.
On top of the 19.1m shares it can still issue under earlier authority given by shareholders, this will mean the investment company would be able to issue 71.9m of new shares.
As well as the pipeline of further investment opportunities under consideration, which includes "advanced" discussions about acquiring wind farms in France and the Nordics, TRIG has investment commitments to complete construction of the Solwaybank wind farm of £43m of which £7m falls due before the end of 2018.
TRIG said the power price forecasts that have driven the growth in its NAV continue to assume a slight reduction in real power prices from the current level until the early 2020s followed by "real growth thereafter, but with the earlier years of the forecasts starting from a higher base than the power price projections adopted in the June 2018 NAV".
"The cost of both gas and carbon, key drivers of UK and European wholesale electricity prices, have increased during the year."
Despite lower than average wind speeds, the company said it continues to achieve strong wholesale electricity prices in the spot markets to mitigate lower generation.