Company Update

Asian Energy Impact Trust PLC

14 June 2024

 

LEI: 254900V23329JCBR9G82

14 June 2024

Asian Energy Impact Trust plc

(the "Company" or "AEIT")

COMPANY UPDATE

Asian Energy Impact Trust plc, the renewable energy investment trust providing direct access to sustainable energy infrastructure in fast-growing and emerging economies in Asia, announces a Company update ahead of the General Meeting on Friday, 14 June 2024 (the "General Meeting") at which shareholders will be asked to vote on a resolution to wind-up the Company (the "Resolution").

CONSTRUCTION UPDATE

Construction of the 200MW solar project that forms part of the Rewa Ultra Mega Solar Park (the "RUMS project") within the SolarArise India Projects Private Limited ("SolarArise") portfolio commenced in November 2023. As previously announced, the expected date to commence commissioning is late June 2024 and the planned additional funding of US$4.5 million has been injected into the project.

This commissioning date remains wholly dependent on the landowner of the Rewa Ultra Mega Solar Park ("RUMSL[1]") finishing the construction of the transmission line and other infrastructure required for commissioning which is not yet complete. Following initial commissioning, there will be a ramp-up period, following which full operational revenues are expected. Based on the latest estimates, there is forecast to be a short-term working capital shortfall of around US$1.2 million in the first financial year of operations through to 31 March 2025 which may require additional funding from the Company in the short term. Additional shortfalls could arise due to interest rate increases or delays in revenue receipts. Any shortfalls are expected, in the first instance, to be funded from operational cashflows within the SolarArise portfolio, subject to remaining in compliance with existing debt and lender requirements. Contingency for possible shortfalls has been ringfenced by the Company until any asset sales are complete when calculating the initial distribution to Shareholders, in order to protect the value achievable in any sales process which will ultimately be delivered back to Shareholders.

As at 13 June 2024, US$41.7 million had been drawn under the US$54.9 million project finance facility for construction of the RUMS project.  

CASH BALANCES

At 13 June 2024, the Company had cash balances of US$33.1 million and held US$1.8 million cash in its UK subsidiary, AEIT Holdings Limited. This is net of the US$5.6 million received from NISPI and US$6.5 million outgoing into SolarArise, being the US$4.5 million additional funding for the RUMS project and an additional US$2.0 million to fund short-term working capital requirements for SolarArise management fees and holding company expenses. This funding, which does not include any provisions for the forecasted RUMS project shortfalls, had already been captured as part of the announced 31 March 2024 net asset value ("NAV") and are therefore NAV neutral, exclusive of any additional interest payable for the RUMS project. As at 31 March 2024, NAV was US$80.2 million, and NAV per share was 45.6 cents.

A further US$0.4 million of payments, including VAT, are expected to be paid by 30 June 2024 to settle the Company's known liabilities. The Company has future expected receivables relating to VAT amounting to US$2.4 million. Expected ongoing running costs including management fees are in the region of US$0.3 million per month.

INITIAL DISTRIBUTION TO SHAREHOLDERS POST-LIQUIDATION

If the Resolution is passed, and as previously announced, the initial distribution of cash to shareholders is currently estimated to be in the region of US$20 million (equivalent to 11.4 cents per share), with the actual amount to be determined at the time of the initial distribution to shareholders. The liquidators would expect to make an initial distribution of cash to shareholders by the end of July 2024.

ORDERLY REALISATION OF THE company'S ASSETS

Plans for commencing, if the Resolution is passed, the process to sell the Company's investments are well advanced and the Board is encouraged by the unsolicited expressions of interest received since announcing its intention to recommend a realisation strategy on 11 April 2024.

Enquiries

Asian Energy Impact Trust plc Sue Inglis, Chair	Tel: [phone]
Octopus Energy Generation (Transitional Investment Manager) Press Office	Tel: [phone] [e-mail]
Shore Capital (Joint Corporate Broker) Mark Percy / Gillian Martin (Corporate)	Tel: [phone]
Peel Hunt LLP (Joint Corporate Broker) Luke Simpson / Huw Jeremy (Investment Banking Division)	Tel: [phone]
Smith Square Partners LLP (Financial Advisor) John Craven / Douglas Gilmour	Tel: [phone]
Camarco (PR Advisor) Louise Dolan / Eddie Livingstone-Learmonth / Phoebe Pugh	Tel: [phone] [e-mail]

About Asian Energy Impact Trust plc

Asian Energy Impact Trust plc listed on the premium segment of the main market of the London Stock Exchange in December 2021 and was awarded the Green Economy Mark upon admission. The Company is an Article 9 fund under the EU Sustainable Finance Disclosure Regulation.

With effect from 1 November 2023, the Company appointed Octopus Energy Generation as its transitional investment manager.

Further information on the Company can be found on its website at www.asianenergyimpact.com.

About Octopus Energy Generation 

Octopus Energy Generation ("OEGEN") is driving the renewable energy agenda by building green power for the future. Its London-based, leading specialist renewable energy fund management team invests in renewable energy assets and broader projects helping the energy transition, across operational, construction and development stages. The team was set up in 2010 based on the belief that investors can play a vital role in accelerating the shift to a future powered by renewable energy. It has a 13-year track record with approximately £6.7 billion of assets under management (AUM) (as of December 2023) across 19 countries and total 3.7GW. These renewable projects generate enough green energy to power 2.4 million homes every year, the equivalent of taking over 1.4 million petrol cars off the road. Octopus Energy Generation is the trading name of Octopus Renewables Limited.  

Further details can be found at  www.octopusenergygeneration.com.

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[1] RUMSL is a joint venture between Madhya Pradesh UrjaVikas Nigam Limited and Solar Energy Corporation of India. Solar Energy Corporation of India Ltd is a company of the Ministry of New and Renewable Energy, Government of India.

 

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