Octopus Renewables Infrastructure Trust is looking to raise £250 million ($475 million) through a share offering on the London Stock Exchange, as it seeks to “accelerate the transition to a future powered by renewable energy”. The company aims to invest in onshore wind and solar projects and non-generation related renewable energy projects in Europe and Australia, which are already operating, in construction and construction ready.
The company’s investment manager has already identified a pipeline of approximately £2.8 billion ($5.3 billion) of renewable energy assets which would potentially be suitable for acquisition. In the initial public offering, the company is targeting a net total shareholder return of 7% to 8% annually over the medium to long term, with an initial annualised dividend yield of 3%. Interested parties have until 3.00 p.m. on December 5 to apply for shares.
“Octopus Renewables Infrastructure Trust offers investors an opportunity to invest in a diverse portfolio of operational and construction ready assets, focussed on onshore wind and solar PV across Europe (including the UK) and Australia, accompanied by attractive and sustainable dividends, with an element of capital growth,” said Chairman of Octopus Renewables Infrastructure Trust, Philip Austin.
In its own transition to renewable energy specialisation, Octopus Energy Investments rebranded itself as Octopus Renewables earlier this year. With a global portfolio of 2.3 GW of clean energy assets, Octopus is understood to be Europe’s largest owner of utility-scale PV projects. Having been instrumental in the U.K. solar marketplace earlier this decade, it has identified Australia as a key growth market.
In the UK investor’s first deal since entering the Australian marketplace, Octopus Investments and Australian renewables developer Edify Energy have arranged more than $450 million to finance one of Australia’s major PV projects – a 333 MW DC solar farm, which has an approval to be collocated with a 100 MWh energy storage facility at Darlington Point, NSW. Previously, the £3 billion ($5.7 billion) global fund manager had set up an office in Melbourne.
“Given the effects of global climate change which are increasing visible, it is clear that the decisions we make now with our investments, will impact future generations. This fund is an opportunity to contribute to positive change,” said Matt Setchell, Co-Head of Octopus Renewables. “At Octopus Renewables we are looking to accelerate the transition to a future powered by renewable energy by unlocking investment into climate saving assets. As our track record demonstrates, we are committed to delivering strong shareholder returns while investing in something meaningful.”