TRIG divests stake in Gode Offshore Wind Farm for EUR 100 million

The Renewables Infrastructure Group (TRIG) has sold a 15.2% equity interest in the 330MW Gode offshore wind farm in Germany for €100 million, a 9% premium to its carrying value. The buyer is a set of funds managed by Equitix Investment Management, and the transaction is pending regulatory approvals and consent. TRIG will retain a 9.8% interest in the wind farm.

TRIG initially acquired a 25% indirect equity interest in Gode Wind 1 offshore wind farm in June 2019. Located in the German North Sea, the facility was developed by Ørsted and began operations in February 2017. In February 2024, TRIG’s board announced a strategy to use retained cash and asset sales proceeds to reduce the company’s floating rate borrowings.

TRIG aims to reduce borrowings under its revolving credit facility (RCF) to £150 million during 2024. As of June 30, 2024, RCF borrowings were £334 million. Proceeds from recent sales, including the divestment of the Pallas onshore wind farm and the Gode wind farm stake, are expected to reduce RCF borrowings to £195 million.

TRIG Chair Richard Morse stated that the disposals enhance TRIG’s net asset value (NAV) and create headroom for future growth. In addition to prudent capital allocation and appraising attractive investment opportunities, TRIG plans a £50 million share buyback programme to provide immediate NAV per share accretion for shareholders.