Ecofin US Renewables seeks to raise USD 25.3m to fund more investments

Solar panels. Author: John S. Quarterman. License: Creative Commons, Attribution 2.0 Generic.

May 10 (Renewables Now) - Ecofin US Renewables Infrastructure Trust PLC (LON:RNEW) is seeking to raise up to USD 25.29 million in a share placement to bankroll “attractive investment opportunities” in its USD-3-billion (EUR-2.8bn) deal pipeline.

The renewable energy trust intends to issue new ordinary shares at a price of USD 1.015 apiece and place additional stock through a retail offer in the UK. Up to 24.9 million shares in total will be available under the two deals, equal to around 19.9% of Ecofin’s existing issued share capital.

The issue price represents a discount of 5.1% to the closing trading price of the company’s ordinary shares on May 9.

The placement is due to be completed by May 19, with results to be announced on the next day. The stock is expected to start trading on May 24.

The fresh funds will be used to repay amounts under Ecofin’s revolving credit facility and finance new investments. Among these is a USD-40-million investment in a portfolio of 10 construction stage solar assets, as well as the acquisition of a 13-MW solar project in Maine.

Ecofin explained that the fundraising is undertaken as all proceeds from its initial public offering (IPO) in late 2020 have been deployed. The funds have been invested in one wind and seven solar projects, all backed by long-term off-take deals.

In the near term, the renewable energy trust will seek to make around USD 166 million of investments in solar and storage assets, with more than USD 1 billion worth of opportunities expected to transact in the next six months.

(USD 1.0 = EUR 0.946)

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