The Renewables Infrastructure Group Limited (TRIG) has renewed its revolving acquisition facility entered into with Royal Bank of Scotland plc (RBS) and National Australia Bank Limited (NAB).
The three-year committed £150 million (US$218.1 million) multicurrency facility, expiring on 20 April 2019, has a 205 basis point margin over LIBOR. The facility includes a £15 million working capital element.
The facility, in place with RBS and NAB since 2014, has been successfully used in relation to the acquisition of interests in 29 projects, most recently in relation to TRIG's investment in the Fred. Olsen UK wind portfolio and the Akuo Energy French solar portfolio.
The renewed facility maintains TRIG's flexibility to acquire further renewable energy generation projects prior to raising fresh equity. Use of the facility also reduces the impact on the group's investment returns of cash drag which can otherwise result from holding significant amounts of un-invested cash on balance sheet.
Richard Crawford - Director, Infrastructure at InfraRed Capital Partners said:
"Renewal of this facility with RBS and NAB, at improved margins, together with TRIG's proposed new share issuance programme, reinforces TRIG's capability to access capital on a timely basis to address its pipeline of acquisition opportunities across multiple technologies and geographies. The continued deepening of capital markets available for operating renewables infrastructure reflects the operating track record of the asset class and its attractiveness as a long-term income-focused product for investors."