Blackfinch Renewable European Income Trust targets £300m IPO

The new investment trust will invest in a diversified portfolio of mixed renewable energy infrastructure assets in Europe, with Blackfinch Group, which has total assets under management of £500m, appointed the company’s investment manager.

Once fully invested, the trust is targeting a dividend yield, based on the initial issue price, of 1% to 3% for the first financial year to 30 June 2022, 5% to 5.5% for the second financial year to 30 June 2023 and, thereafter, 6% per annum, increasing progressively.

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It will target a net total shareholder return in excess of 8% per annum over the medium-to-long term.

The investment trust has identified a pipeline of renewable energy infrastructure assets in excess of £500m, including wind, solar, hydro and hydrogen assets and expects the net proceeds of the issue to be deployed within 12 months of admission. 

The board of BRET comprises four non-executive directors, headed by Anthony Marsh, who established the world’s first Green Investment Bank. 

BRET chair Marsh said: “We are delighted to announce that we are considering an IPO and a fundraising of up to £300m, which we intend to make available to retail investors via an intermediaries offer. 

“Demand for renewable energy in Europe is enormous, and there is a critical undersupply.”

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He added: “The portfolio will be diversified across technology, geography, and stage of construction, and investments will be focused on the higher-yielding markets of Italy, Portugal and Central Eastern Europe, including Poland, Czech Republic, Austria and Hungary.

“Blackfinch Group, BRET’s investment manager, has a highly experienced energy investment team and successful track record in renewable energy investments, and their network of strategic partners will help accelerate the deployment of monies raised.”

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