UPDATED - Ecofin US Renewables plans USD-250m IPO in London

Ecofin US Renewables Infrastructure Trust PLC today unveiled plans for a bourse listing in London, seeking to raise up to USD 250 million (EUR 212m) to invest in US projects.

The investment trust, incorporated in England and Wales, said on Tuesday it will target a net total return of 7.0%-7.5% per year with a dividend yield of 5.25%-5.75%. Its initial public offering (IPO) will include an initial placing and an offer for subscription of ordinary shares. A fund managed by Capricorn Investment Group has agreed to subscribe for 5% of the ordinary stock.

The IPO proceeds will go to support investments in a diversified portfolio of US renewable energy assets with long-term off-take agreements. Ecofin's plan is to have “substantially” committed the IPO proceeds within 12 months from the floatation.

The prospectus is available here.

The company has already entered into the Seed Asset Acquisition Agreements to buy a portfolio of operational and under-construction solar parks in the US for about USD 61 million. It has further identified a pipeline of 124 projects, mainly utility-scale and commercial wind and solar, with a combined equity value of USD 4.6 billion. It will have access to an “active pipeline of investment opportunities” of Ecofin Advisors, its investment manager.

Ecofin will apply to list its stock on the London bourse and get admission to the premium segment of the Official List of the Financial Conduct Authority. It expects to announce results from the initial issue on December 10, with dealings to begin four days later.

Stifel Nicolaus Europe has been hired as sponsor and sole bookrunner of the transaction.

(USD 1 = EUR 0.85)

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