Despite the DKr 60bn rights issue announced by leading offshore wind developer, Denmark’s Orsted, whose shares subsequently plummeted, it is interest rates that continue to hold the key to the valuations both of Infrastructure Investment Companies (IICs) and of Renewable Energy Infrastructure Funds (REIFs). In this episode of Hardman Talks interview, Hardman & Co CEO, Keith Hiscock, chats with Renewables and Infrastructure analyst, Nigel Hawkins, about his latest Insight paper IICs/REIFs – Tackling NAV discounts.
Over the last two years, as interest rates have remained high, heavy discounts to Net Asset Values (NAVs) have opened up, which the companies/funds, through various means, are trying to close. Some have recommended bids, including BBGI, and many others have instituted share buyback programmes. The most challenged – sadly – are going down the Managed Wind Down route (MWD).
The IICs are generally less exposed, since the renewables sector faces opposition from many quarters, as the concerns about the underlying costs of renewables generation – and the quest for Net Zero – intensify.
Nigel also covers battery storage; once the market’s rising star, then abruptly humbled, and now showing glimmers of revival thanks to new contracts and tax credit windfalls. His insights hint at where the next opportunities may lie, and what could finally turn the tide for this hard-pressed corner of the market.
Watch the interview in full now to find out more.
