Blackfinch Renewable European Income Trust PLC announced plans to raise £300mln in a London IPO.
The group is a new closed-end investment trust established to focus on renewable projects in Europe, led by investment specialist Blackfinch Group.
It plans to buy 21 construction-ready solar assets worth £232mln, all located in Italy except for two in the UK. It has also identified a pipeline of over £500mln in renewable energy infrastructure assets.
BRET is targeting a dividend yield, based on the initial issue price, of 1-3% in the first financial year to June 2022, 5-5.5% in the following period and 6% thereafter. Net total shareholder return is envisaged to be over 8% over the medium-to-long term.
BRET said it will qualify for the London Stock Exchange's Green Economy Mark at admission, which recognises companies that derive 50% or more of their total annual revenues from products and services that contribute to the global green economy.
"Demand for renewable energy in Europe is enormous, and there is a critical undersupply. This new investment trust will create a portfolio of European renewable energy infrastructure assets capable of generating stable long-term cash flows,” said chairman Anthony Marsh.
"The portfolio will be diversified across technology, geography, and stage of construction, and investments will be focused on the higher yielding markets of Italy, Portugal and Central Eastern Europe, including Poland, Czech Republic, Austria and Hungary.”
"Blackfinch Group, BRET's Investment Manager, has a highly experienced energy investment team and successful track record in renewable energy investments, and their network of strategic partners will help accelerate the deployment of monies raised.”