Renewables Infra Fund Targets More Solar as Raise Near

(Corrects amount raised so far in second paragraph.)

The Renewables Infrastructure Group Ltd. (TRIG), a U.K. fund that listed in July, aims to increase its share of solar assets as it invests as much as 200 million pounds ($333 million) a year, its investment manager said.

Solar plants could represent as much as a third of its portfolio, up from 17 percent now, Richard Crawford, a director at its investment manager InfraRed Capital Partners Ltd., said by phone. TRIG, which has raised 310 million pounds and aims to issue shares in March, may invest 100 million pounds to 200 million pounds in wind and solar projects a year, he said.

“We like the mix of wind and solar in the same portfolio, because this manages weather exposure,” he said in an interview today. “We would like to further increase the portion of solar within the portfolio to a quarter or a third” compared with 10 percent initially.

TRIG was the first of four clean-energy funds that listed last year to tap investors interested in such income-generating assets in the U.K. So far it has invested about 300 million pounds in 14 wind farms and six solar parks.

The fund is planning another equity raising in light of opportunities its has identified from developer Renewable Energy Systems Ltd., its key shareholder, and third parties, it said today as it reported initial results. The company has right of first refusal on RES projects. Currently, the fund is focusing on operational wind and solar assets in the U.K., France and Ireland.

Further details on the equity issue including its size will be announced in coming weeks once the fund concludes negotiations for several assets, according to the director of infrastructure.

Meanwhile, TRIG has secured an 80 million-pound revolving loan from two banks to buy projects. Any funds used will be repaid from future equity issuance, it said on Feb. 23.

To contact the reporter on this story: Marc Roca in London at mroca6@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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