Read about how we supported TRIG with their ESG and sustainability ambitions
The Renewables Infrastructure Group Limited (TRIG) was one of the first companies listed on the London Stock Exchange that invests in renewable energy infrastructure projects. It’s now a member of the FTSE-250 index. InfraRed Capital Partners is the Investment Manager to TRIG.
The company aims to generate sustainable returns for its shareholders, by developing a diversified portfolio of renewable infrastructure assets. Its onshore and offshore wind farms and solar parks located across the UK and Europe, contribute towards a zero-carbon future and produce revenues from the sale of electricity and government-backed green benefits.
Aligning sustainability and purpose
InfraRed was not only looking to expand TRIG’s Revolving Credit Facility (RCF), but also for an FX agreement that that would incentivise the company to meet its sustainability goals and achieve its stated purpose: supporting the transition to a low-carbon economy.
RBS International has supported TRIG since its listing in 2014. More recently, it has provided a 3-year sustainability linked revolving credit facility supporting the fund’s future acquisition pipeline, as well as its progressive ESG strategy.
NatWest Markets has recently launched an innovative, sustainability-linked FX Derivatives agreement, which was an ideal solution for TRIG. It marks the first of its kind that we’ve established with an Alternative Investment Fund.
As part of the agreement, TRIG can receive a sustainability payment in recognition of delivering against its Environmental, Social and Governance (ESG) goals. The payment receivable is linked to the volume of TRIG’s foreign exchange hedging amount.
The benefits of these ESG goals advantage everyone in the jurisdictions TRIG operates in, generating cleaner energy and supporting jobs in local communities:
- Environmental: increase in the number of homes powered by clean energy from TRIG's portfolio
- Social: increase in the number of community funds supported by TRIG
- Governance: maintain a low Lost Time Accident Frequency Rate (LTAFR)
LTAFR is a key metric for TRIG: safety at work. It measures the number of personnel injured and unable to perform their normal duties for seven days or more, for each hundred thousand hours worked.
Fabio Madar, Global Head of FX Sales and Structuring said, “We’re very pleased to be able to support TRIG’s ESG strategy through both financing and now Foreign Exchange. This was a strong collaboration across the whole NatWest franchise, including both RBS International and NatWest Markets plc.”
Stuart Foster, Head of Institutional Banking and Depositary at RBS International added, “We are delighted to have had the opportunity to support TRIG on the next chapter of their ESG strategy, which is very much aligned to the Group’s purpose. A demonstration of a seamless customer experience across the overall bank attributing to the strength of our brand.”
Richard Crawford, Director, Infrastructure at InfraRed Capital Partners and TRIG’s Fund Manager, “TRIG is delighted to have worked with NatWest to become the first Alternative Investments Fund to link its hedging activities to the ESG performance of the Company. We believe embedding sustainability into our activities across the full investment cycle helps ensure sustainable returns for our investors.”
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