Octopus Renewables Infrastructure Trust PLC (LSE:ORIT) launched a £74mln fundraising to allow it to snap up some of the £423mln of acquisitions in its pipeline.
A placing with institutional investors will make up the bulk of the funding with a retail offer also being made on broker Peel Hunt’s REX platform.
The placing and REX offer are at an issue price of 105.5p per share, representing a discount of 4.1% to the closing price yesterday and a premium of 6.4% to the unaudited net asset value per share of 99.16 pence at the end of September.
The pipeline assets are either under option by Octopus or the company is in “advanced or bilateral negotiations”, with an additional approximately £1.1bn of other assets over which the manager has submitted non-binding offers.
Directors of the trust said they intend to use the net proceeds to satisfy investment obligations in relation to Spanish and Irish solar assets, which total roughly £80-85mln, to fund construction costs for the Cumberhead wind farm, or to purchase other investments consistent with its investment policy.