TRIG, Infrared acquires interest in 714 MW East Anglia ONE wind farm

The Renewables Infrastructure Group Ltd (TRIG) has exchanged contracts to acquire a 14.3% indirect equity interest in East Anglia One, a 714 MW newly constructed operational offshore wind farm located off the coast of Suffolk in the North Sea from Green Investment Group (GIG).

The investment has been made in a 50% interest in the holding company through which GIG's initial investment was made. The investment is subject to consent from The Crown Estate and is expected to complete by the first quarter of 2021. Following the completion of the transaction, offshore wind investments are expected to represent approximately 29% of TRIG's portfolio.

TRIG has partnered with InfraRed European Infrastructure Income Fund 4 (IREIIF4) for the transaction, a fund managed by InfraRed, which will acquire a 5.7% indirect equity interest in the project alongside TRIG. This is consistent with TRIG's strategy of partnering with aligned co-investors on larger transactions. TRIG's investment will be financed from a combination of its existing cash balance and a drawdown from the Group's revolving acquisition facility.

The Project was developed by ScottishPower Renewables, a subsidiary of Iberdrola, a global energy leader with 34GW of installed renewables capacity.  The turbines utilize Siemens' direct drive technology, with Siemens providing maintenance services in relation to the turbines under an initial contract with the Project. The Project benefits from an attractive Contract-for-Difference (CfD) subsidy for the next 15 years with inflation indexation. Debt financing at the Holding Company level (the consortium level for GIG, TRIG, and IREIIF4) is fixed rate and fully amortizing within the subsidy period.