Blackfinch Renewable European Income Trust’s £300m IPO

Blackfinch Renewable European Income Trust (BRET) has issued an announcement detailing plans to launch an IPO to raise about £300m via a placing, offer for subscription and intermediaries offer. The firm also hopes to apply to trade on the London Stock Exchange (LSE).

The new investment trust will prioritize backing a vastly diverse portfolio of different renewable energy infrastructure assets across Europe. 

Blackfinch Group, a firm that currently has £500m in assets under management, chose the firm’s investment manager.

If completely deployed, the trust is projected to yield dividends (based on the initial issue price) of 1% to 3% for the first financial year ending 30 June 2022. The projected yield for the second financial year ending 30^th June 2023 is 5% to 5.5%. 

The projection for subsequent years is 6% per annum, with a progressive yearly increase also expected.

BRET chair Marsh said: “We are delighted to announce that we are considering an IPO and fundraising of up to £300m, which we intend to make available to retail investors via an intermediaries offer.”