(Bloomberg) -- NextEnergy Renewables Ltd. plans to raise 300 million pounds ($412 million) in an initial public offering in London, capitalizing on growing demand for sustainable investments.
The company will invest in renewable power assets and other infrastructure that enables the transition away from fossil fuels, the latest example of asset managers trying to match investors increasing concerns about environmental, social and governance standards with a surging pipeline of green power.
NextEnergy Renewables will be managed by NextEnergy Capital IM Ltd., part of the NextEnergy Group, which has more than $2.3 billion in renewable energy-related assets under management, according to a filing.
The company aims to provide investors with 9% to 11% total returns per year, including a dividend of 5.5 pence per share in the financial year ending Dec. 31, 2022 and growing progressively after.
Directors will publish a prospectus later this month. Admission of ordinary shares on London Stock Exchange Group Plc is expected in March.
NextEnergy Renewables may initially invest alongside another NextEnergy fund, NextPower III LP, which invests in solar power assets backed by long-term power purchase agreements. That $282 million fund is working on acquiring 500 megawatts of assets and has an additional pipeline of 2 gigawatts.
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