Monday 1 April 2019

TRIG Share Offer Completed - Update

Just a brief update to my post relating to this clean energy addition to my portfolio last month following the release of full year results.

The trust has raised £302 million in a heavily over-subscribed share offer. They issued an additional 265m new shares at 114p, with half allocated to existing shareholders. This is a 3% discount to the current share price of 118p and of course there are no dealing charges or stamp duty. Unfortunately, due to the heavy demand for the shares, my application was scaled back and I received around 60% of the additional shares I applied for.

This will now make TRIG the largest trust in the sector with a market value of £1.8bn compared to Greencoat UK Wind at £1.7bn.

The bulk of this money - £247m, will be used to repay credit for the two recent acquisitions in Sweden.

Helen Mahy CBE, Chairwoman of TRIG, said: 
"The Board would like to thank TRIG's existing shareholders and new investors for their support in the Company's fundraising. Such significant oversubscription for this initial issue under the share issuance programme is testament not only to TRIG's demonstrable track record in delivering long-term, sustainable income but also to TRIG's commitment to de-carbonisation. This equity issue enables us to capitalise on our exciting near-term investment pipeline and continue to deliver sustainable value to our shareholders."

The trust pays a quarterly dividend and has a full year target for 2019 of 6.64p which represents a yield of 5.8% of the new issue price.

Last Friday, the company also announced a deal to acquire a new 40MW onshore wind project in Burgundy, France and which should be operational by early 2020.

As ever, this article is merely a record of my personal investment decisions and should not be regarded as an endorsement or recommendation - always DYOR!

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