The company hopes to raise £8mn from the offer, which opened on 31 July. Proceeds will be invested directly into building new onshore wind power assets to expand the firm’s portfolio of renewable energy projects in the UK. “The offer represents an investment opportunity in tangible, high value projects with long term revenue streams – an investment in the nuts and bolts of renewable energy generation,” Triodos Renewables says.
Funds will be raised through a targeted placing of around four million shares at £1.90 per ordinary share, with a minimum investment of £570. The offer is open to both new investors and existing shareholders and the shares will be tradable on the Matched Bargain Market managed by Stocktrade (a trading name of Brewin Dolphin). The deadline to subscribe to the offer is 31 August.
“The funds raised will be put to work very quickly building new projects and we are therefore targeting 9% to 10% annualised rate of return on investment to our shareholders over the long term,” said Matthew Clayton, Managing Director of Triodos Renewables.
The firm focuses on low financial risk projects that use proven technologies and operate on long-term contracts. An increasing proportion of its projects are located on Brownfield land where the aesthetic impact is reduced.
Over the last three years the company has increased its power generation capacity by 63% - it now owns and operates eight renewable energy projects in the UK with a combined capacity of 38.25MW and is aiming to increase that to 100MW by 2015. Its existing projects include the Haverigg II Wind Farm in Cumbria, a repowering wind farm project at Caton Moor in Lancashire, a single wind turbine in Dunfermline, and the Beochlich Hydro Electric project in Argyll in Scotland.
Triodos Renewables is managed in the UK by Triodos Bank, which has over €5.6 billion under management and investments in 361 renewable energy projects across Europe with a generating capacity of 2134MW.