The London-listed, Guernsey-domiciled TRIG invests in onshore wind and solar photovoltaic energy generation assets and is managed by InfraRed Capital Partners, who also manage HICL Infrastructure. According to investment trust analysts at Numis, the proceeds of its issue, which was oversubscribed, will be used to acquire a 276 MW, 100%-owned initial portfolio of 14 onshore wind farms and four solar PV parks located in the UK, France and Ireland.
Offering an initial annualised yield of 6%, the trust is aiming to grow dividends in line with inflation and so has a target return over the long term of 8-9% net of fees.
Numis pointed out TRIG is the third renewables fund to be launched this year, following Greencoat Wind and Bluefield Solar Income. Both are currently trading at premiums to their issue price. “We expect the shares to trade strongly in the secondary market and we expect the listed Renewables asset class to grow significantly over the next couple of years. There remains scope for further IPOs, although it is far easier to raise capital for an existing fund.”
But it is not just income-producing funds where investors are showing interest as evidenced by the oversubscription for Blackrock Frontiers’ C-issue. The board noted subscribers to the trust, which is managed by Sam Vecht, came from a wide range of investors including “significant” interest from wealth managers and institutions.
Simon White, head of investment trusts at BlackRock, said: “Awareness of the growth potential of frontier markets and the diversification benefits they can bring to balanced portfolios has grown substantially in recent years.”
On conversion of the C shares will increase the size of BlackRock Frontiers to over £150m.
