VH Global Sustainable Energy Opportunities Plc (LON:GSEO) plans to raise some GBP 150 million (USD 185.6m/EUR 176.3m) in gross proceeds through the issuance of new ordinary shares.
The energy infrastructure investor advised by Victory Hill Capital Advisors LLP is getting ready for an initial placing, initial open offer, initial offer for subscription and initial intermediaries offer at an issue price of GBP 1.1 apiece.
The board of the investment firm intends to use the net proceeds from the capital raise primarily to invest in a so-called “enhanced pipeline” that consists of three projects totalling GBP 280 million. If demand is high enough, the size of the capital hike may be increased to just as much.
The enhanced pipeline includes a 153-MW onshore wind portfolio in Mexico consisting of three wind farms that benefit from 100% take-or-pay corporate power purchase agreement (PPA) with a listed retail conglomerate. The wind parks are managed and operated by a European contractor.
Additionally, the pipeline includes a 198-MW hydropower plant in Brazil that could be acquired for GBP 129.2 million. It is currently owned by a large European utility and has a 25-year concession in place and a combination of long-term PPAs and a rolling five-year hedge strategy for price of power earned.
The third targeted asset is a 31-MW combined heat and power project in the UK valued at GBP 80 million. It will feature carbon capture and reuse technology.
The investment adviser has expressed confidence that the company would be able to invest or commit substantially all of the net proceeds within three to six months after the initial admission.
(GBP 1.0 = USD 1.237/EUR 1.175)
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