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TRIG takes £120m in oversubscribed ‘tap’ share issue

21 May 2020

The 5% dividend yielding Renewables Infrastructure Group (TRIG) clears its overdraft and gets funds for new wind and solar power investments.

The Renewables Infrastructure Group (TRIG ) has raised £120m before costs in the ‘tap’ share issue it launched two days ago.

Brokers Investec and Liberum, who were bookrunners for the fund raising, reported strong investor demand and had to scale back applications ‘materially’.

Shares in the wind and solar power portfolio firmed 0.2p to 124p, 3p above the issue price of 121p, after the news was announced. 

A total of 100m new shares will be issued and will begin trading on Tuesday after the bank holiday.

The board of the £2bn Guernsey investment company may feel vindicated after the share offer was criticised for being priced up to 9% above net asset value that has been depressed by falling power price forecasts.

The fund raise will see TRIG, managed by Richard Crawford at Infrared Capital Partners, narrowly overtake Greencoat UK Wind (UKW ), a £2.1bn fund run by Stephen Lilly and Laurence Fumagalli at Greencoat Capital, in terms of its market value.

At yesterday’s close TRIG shares stood on an 11.8% premium over their estimated NAV of 110.7p, according to Numis Securities. They have fallen 8% this year but offer a 5.5% dividend yield and have delivered a 56% total return over five years.

Together with recent gains on disposals, TRIG will use the money to repay its overdraft facility, with the remaining £70m split between new investments and funding construction projects due to finish this year and next.

The company last raised money in October when a previous share issue was also over subscribed and attracted £227.6m before costs.

 

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