ITC, Powerscourt to raise €12.5m funding

INVESTMENT ADVISERS ITC and Powerscourt are raising a total of €12.5 million in Business Expansion Scheme (BES) funding for wind energy projects and high-growth businesses.

ITC said yesterday it is planning to raise €5 million from investors for a "wind-farm themed" BES fund. The firm also intends joining forces with Powerscourt to raise €7.5 million for a separate fund which the pair intends to invest in high-potential-growth sectors such as telecoms services and technologies, medical devices and pharmaceuticals.

Investors are allowed tax relief at the higher 41 per cent PAYE rate on the money they place in BES funds. Once the cash is fully invested before the end of 2009, contributors can backdate their tax relief to this year.

Last year, the Government raised the limits on what individuals could place in these schemes to €150,000 from €31,750, and doubled the amount of money individual companies could raise under the scheme to €2 million.

ITC began investing in wind energy projects last year when it raised €6 million to invest in this industry. Yesterday, its head of business development, Iain Cahill, said the exercise allowed it to develop an increased level of knowledge of the industry and the key risks. "This knowledge now allows us to review a wider number of proposals," he explained, adding that the firm believes the wind energy market is favourable.

Mr Cahill said most of the projects it is considering already have planning permission and agreements in place to sell the electricity they generate, which means they are attractive to banks, as they produce strong revenues.