Sunday 18 March 2018

UK financial services giant Legal & General to be anchor investor in €250m NTR fund

NTR chief executive Rosheen McGuckian
NTR chief executive Rosheen McGuckian

Paul O'Donoghue

The investment arm of UK financial services giant Legal & General has committed to funding up to 47.5pc of a wind investment fund targeting €250m of equity launched by Irish renewable energy group NTR.

NTR, which recently completed the demerger of its wind energy business, has already committed €50m to the fund. The Irish firm said it is anticipated that a “select number of other investors” will join the fund in the first quarter of the new year.

The fund plans to invest in as much as 270 megawatts of wind energy. NTR said that the total capital required for the venture amounts to about €670m. The wind projects in the fund would generate enough electricity to power up to 170,000 homes.

NTR said it has already acquired the first four assets for the fund, which total €62m in equity and will provide a combined capacity of 55MW. 

The assets include multiple areas in Scotland, Northern Ireland and the Republic of Ireland that are ready for the construction of wind farms with land, planning consent and grid connection agreements all in place.

NTR said the fund has an “active pipeline of further investments across the UK and Irish markets”.

In addition to its direct investment in the fund, Legal & General has partnered with NTR in order to explore further prospects to invest in the clean energy sector, through an investment in NTR’s clean energy investment and asset management business NTR Wind Management Limited.

NTR chief executive Rosheen McGuckian said: “This is a very exciting partnership for NTR, where we will be aligning the patient capital of Legal & General with our own track record in acquiring, constructing and operating wind projects. 

"We have a rapidly growing pipeline of construction ready onshore wind assets and we are delighted that Legal & General have both committed to this, our first wind fund to include other investors, and to working with us on additional clean energy investment opportunities.”

Director of Direct Investments at Legal & General Capital Laura Mason said: “Renewable energy is part of the solution to ensure the lights stay on in the across Europe.

“Investment into new energy technology will deliver massive leaps in renewables capacity, and drive down the household bills of renewable energy for customers.”

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