The Renewables Infrastructure Group (TRIG), a London-listed investment company, has announced the sale of a 15.2% equity interest in the 330MW Gode offshore wind farm in Germany.

The consideration for this transaction is €100m, representing a 9% premium to the valuation of the wind farm as of 31 December 2023.

The stake is being sold to funds managed by Equitix Investment Management, pending necessary clearances and consents.

Post-sale, TRIG will retain a 9.8% stake in the wind farm.

This transaction is part of TRIG’s active portfolio management strategy. Over the past 12 months, TRIG’s disposals have totalled £210m, realised at an average 11% premium to the carrying value.

In February 2024, as part of the 2023 Annual Results, TRIG’s Board announced a strategic focus on using retained cash and proceeds from asset sales to reduce the Company’s floating rate borrowings under the Revolving Credit Facility (RCF) to approximately £150m during 2024.

As of 30 June 2024, drawings under the RCF stood at £334m. The proceeds from the sales of the Pallas onshore wind farm and the 15.2% equity interest in Gode are expected to be received in the second half of 2024, which would reduce TRIG’s RCF borrowings to around £195m.

Due to significant progress in TRIG’s capital allocation priorities and the attractive investment opportunity presented by TRIG shares trading at a substantial discount to the Company’s Net Asset Value, the Board has allocated up to £50m to a 12-month share buyback programme. This programme will commence following the release of the 2024 Interim Results.

Based on current cash flow projections, agreed divestments to date, and assuming approximately £25m of the buyback programme is completed this year, RCF drawings are expected to reduce to around £220m by 31 December 2024. The Investment Manager is pursuing additional disposals and portfolio-level financing opportunities to further reduce RCF drawings and create greater capacity for future investment activities.

TRIG chairman Richard Morse said: “The disposals secured by the Managers both enhance TRIG’s NAV and create headroom for future growth. As part of our commitment to prudent capital allocation, the Managers continue to appraise attractive investment opportunities, which include share buybacks, and progress selective disposals.”