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    Octopus finalizes the transaction of its Polish projects

    Octopus Renewables Infrastructure Trust (ORIT) has successfully concluded the sale of the Krzecin and Kuslin onshore wind farms in Poland to an affiliate of Orlen. These two facilities, with a combined capacity of 59MW, can generate sustainable energy for over 100,000 homes, preventing approximately 150,000 tonnes of carbon dioxide emissions annually.

     

    The completion of the transaction was contingent on obtaining competition approvals, which have now been secured, according to ORIT. After settling asset-related debts and concluding foreign exchange and hedging arrangements, ORIT is poised to receive net proceeds of around £92 million from the transaction.

     

    This amount exceeds the company’s initial expectations when entering into the sale agreement in October 2023 and represents a 21% premium over the Krzecin and Kuslin wind farms’ holding value of £76 million as of September 30, 2023. This transaction is anticipated to have a positive impact on Net Asset Value (NAV) of approximately +2.8 pence per Ordinary Share, as stated by ORIT.

     

    The completion of this sale is expected to yield an Internal Rate of Return (IRR) of approximately 30% over the lifespan of ORIT’s investment. The majority of the net proceeds will be utilized to settle ORIT’s short-term debt facilities.

     

    ORIT initially acquired the Krzecin and Kuslin wind farms during their construction phase in October 2021 and successfully managed the construction process, bringing the wind farms into operation in 2022. This divestiture aligns with the company’s strategic objective of freeing up capital through the sale of a select number of assets.

     

    Chairman of Octopus Renewables Infrastructure Trust, Phil Austin, 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.”

     

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