The Octopus Renewables Infrastructure Trust PLC (LON: ORIT) share price rose 2.05% after announcing that it had successfully completed the sale of the Krzecin and Kuslin onshore wind farms in Poland, to an affiliate of ORLEN S.A., a prominent multi-energy company based in Poland.
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The move comes after Octopus announced the deal on October 6, 2023. The finalisation of the Transaction was contingent upon obtaining competition approvals, which have now been secured.
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In summary, after settling asset-related debts and concluding foreign exchange and hedging agreements, ORIT is set to receive approximately £92 million in net proceeds from the Transaction. This amount fell at the upper end of the Company’s expectations when the sale agreement was established in October 2023.
Notably, this represents a remarkable 21% premium over the Krzecin and Kuslin wind farms’ holding value, which stood at £76 million as of September 30, 2023, and it will have a positive impact on the Net Asset Value (NAV) of approximately +2.8 pence per Ordinary Share*.
Completing this Transaction will yield an Internal Rate of Return (IRR) of approximately 30% throughout ORIT’s investment. Most of the net proceeds will be allocated to settling ORIT’s short-term debt facilities.
ORIT originally acquired the Krzecin and Kuslin wind farms during their construction phase in October 2021. The Company effectively managed the construction process, successfully bringing both wind farms into operational status in 2022.
Together, these two sites possess a combined capacity of 59 MW, generating sufficient clean energy to power well over 100,000 households while preventing the release of approximately 150,000 tonnes of carbon dioxide emissions annually.
Phil Austin, Chairman of Octopus Renewables Infrastructure Trust plc, commented: “We are pleased to deliver the first result from our capital recycling programme with the successful sales of the Polish wind farms. This transaction is an excellent result for the Company, delivering a strong uplift to the Company’s NAV. It demonstrates our Investment Manager’s ability to manage the construction of new renewable energy assets, which help to accelerate the transition to net zero and also to deliver capital growth for shareholders through active asset and portfolio management.”
Octopus Renewables (ORIT) share price.
Octopus Renewables (ORIT) share price rose 2.05% to trade at 89.5p from Tuesday’s closing price of 87.7p.
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