Blackfinch Renewable European Income Trust (BRET) said on Tuesday that it plans to raise £300m in a listing on the London Stock Exchange.
The company, which is a new closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets in Europe, said it’s planning to buy 21 construction-ready solar assets with a value of around £232m. The assets are located mainly in Italy, with two assets in the UK.
They are expected to become operational within 30 months of admission and have a total installed capacity of over 300 Megawatts-peak.
BRET said that once fully invested, it 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 year to 30 June 2023 and thereafter 6% per annum, increasing progressively.
Chairman Anthony Marsh said: “Demand for renewable energy in Europe is enormous, and there is a critical undersupply. This new investment trust will create a portfolio of European renewable energy infrastructure assets capable of generating stable long-term cash flows that will support a dividend yield over the medium-to-long term of 6% per annum and more, and total shareholder returns of over 8% per annum.
“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.”