The Board of TRIG have announced that the company has exchanged contracts to invest in Phoenix SAS, a holding company which owns a portfolio of operational wind and solar renewable energy assets in France.
The portfolio comprises five onshore wind farms in Northern France with a combined capacity of 74 MW and four operational solar parks with battery storage located on the islands of Corsica and La Réunion with a combined capacity of 29 MW (the Portfolio). All the Portfolio assets are backed by the French government's feed-in-tariff subsidy. The investment is made in the form of mezzanine level bonds which are scheduled to be fully repaid within a period of 12 years, which is within the remaining subsidy life of the Portfolio.
The assets were all developed by Akuo Energy, a French developer, whom TRIG has partnered with on other investments in France. The investment has an attractive return with very little sensitivity to changes in wholesale power prices. The bonds are subordinated to project finance debt within the Portfolio and are repaid in priority to all equity distributions. Through the bonds, TRIG has information and management rights similar to those of a minority equity investor.
This investment will represent approximately 2% of TRIG's portfolio value. When combined with the investment in East Anglia One, UK, which is expected to complete shortly upon consent from The Crown Estate, and taking into account the proceeds from the recent equity raise by the company, there will be drawings of approximately £40 million under TRIG's revolving credit facility.
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Read the article online at: https://www.energyglobal.com/solar/22122020/trig-to-invest-in-french-renewable-energy-assets/