Clean Energy IPO Raises £300.
By Anne Lewis Schneide.
The UK’s largest initial public offering of a clean power company has raised a massive £300 million for investment into the Renewable Infrastructure Group Ltd., to be utilised in new solar energy and on-shore wind projects. In this phenomenally successful launch on the London Stock Exchange, the proceeds from the sale of shares will be used to fund numerous low carbon technology projects.
The funds will be used to buy fourteen on-shore wind farms, as well as four solar photovoltaic plants. These projects when combined will have the capacity to produce 276MW of energy. This is according to an online statement released by The Renewables Infrastructure Group Ltd. a.k.a. TRIG, on July 24th. These new projects will be situated in the UK and in France.
TRIG’s portfolio of top notch operational on-shore wind and solar photovoltaic generation assets look like they will provide investors with a long-term investment that is attractive, stable and is linked to inflation in their yield, according to Helen Mahy, who is the non-executive chairman of this company.
Renewables Infrastructure will be managed by InfraRed Capital Partners Ltd. and also has the rights to purchase the projects which will be built by Renewable Energy Systems Ltd. The aforementioned company is owned a power plant development company called Sir Robert McAlpine Ltd. with Renewable Energy Systems holding 5% of the issue share capital.
This initial public offering beats previous records set by Greencoat UK Wind Plc and Bluefield Solar Income Fund Ltd., who opened their initial public offering on the London Stock Exchange at £260m and £130m respectively. Ben Warren, who works on environmental finance for Ernst & Young LLP, has said that the market is heating up for renewables, this in a statement issued on June 27th. Trading is set to commence on the London Stock Exchange on July 29th.
Mr. Warren has stated that as the conventional exit routes of utility purchasers remain stifled by constrained balance sheets, developers and infrastructure funds are looking to the deeper pools of capital in the public markets. It would appear that there is great interest in the investment of public funds in shares purchased for companies that are promoting the use of low carbon emission energy supplies as the way of the future, with renewable energy suppliers being at the top of the list of trending investment portfolios.
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