New renewable energy trust to raise £200 million in London IPO

Downing Renewables and Infrastructure Trust (DORE) will today announce a £200 million capital raise through the London Stock Exchange, as part of its quest to develop a portfolio of renewable energy assets in the UK, Ireland and Northern Europe.

The fund has already secured £30 million in investment, including £20 million from its investment manager Downing LLP and £10 million from existing investors, and it has the option to acquire a seed portfolio of £50 million, with remaining net proceeds expected to be deployed within 12 months.

Targeting an initial dividend yield of 3%, the trust will focus on delivering sustainable income streams and capital growth by diversifying the portfolio via technology as well as by geography, project stage and revenue.

“By constructing a truly differentiated portfolio in this way, we reduce our dependency on any one renewable energy resource, any single jurisdiction and any one set of policies and regulations,” said Tom Williams, head of energy and infrastructure at Downing LLP.

“We believe DORE will be ideally positioned to support the growing demand for renewable energy and deliver attractive returns to investors as Europe continues to tackle the climate emergency,” he added.

Downing has funded 166 investments into renewable energy assets since 2010, achieving an average rate of return of 9% on these.