Triodos Renewables looks to raise £15 m through share issue

The renewable energy firm, managed by ethical bank Triodos, began seeking applications for the share issue this morning. The company already owns six onshore wind farms and one hydroelectric power plant with a combined capacity of 36.8 megawatts (MW) and is looking to raise further funds to acquire up to 27 MW of new green energy capacity.

Share offer
Priced at £1.80 per ordinary share, the public share offer has been deliberately structured to encourage as many people to take a direct stake in the UK’s expanding renewable energy infrastructure, the company said. As such, the investment floor has been set at £540 for both new investors and existing shareholders. Up to 8,333,400 shares are being made available to be traded on the Matched Bargain Market managed by Brewin Dolphin.

"In launching this share issue we are giving investors the opportunity to participate directly in the energy revolution currently taking place in the UK by taking direct ownership of some the country’s new renewable power projects," said James Vaccaro, managing director of Triodos Renewables. "Over the last 15 years we have established a strong leadership position in medium scale, community-focused projects and it is this success that has prompted us to offer the public more shares. We aim to use all of the money we receive to build new sources of renewable power here in the UK."

Renewable assets
A spokesperson for Triodos Renewables said that approximately 95 per cent of the new money raised will be used to acquire and build new onshore wind power assets. "The company already has a pipeline of projects including 16.2 MW of capacity that we have an exclusive option to acquire. If the offer is fully subscribed and we raise £15 million this will give us sufficient funds to acquire up to 27 MW of new renewable energy capacity, predominantly onshore wind," he said.

The first project to come on line will be a 1.5 MW wind farm in Dunfermline, Scotland, which is expected to begin producing green energy before the end of 2011, the company said.  

Rate of return
Because of the strong pipeline of the projects and the long-term revenue streams promised by the renewable energy sector, the company said it was
targeting a nine and 10 per cent annualised rate of return on investment to its shareholders over the longer-term.

"Our share offer allows investors mindful of the convergence of climate change, energy security issues and the need to transition to a safe and sustainable energy future, a chance to make a real difference and expect a good return," said Vaccaro.

Triodos Renewables currently has 4,000 investors, making it the most widely owned renewable energy company in the UK. Over the last three years it has increased its power generation capacity by 57 per cent.

The share offer will close on August 30 2011.