Acquisition of Seed Portfolio and Pipeline Update

RNS Number : 8934K

SDCL Energy Efficiency Income Tst

19 December 2018

 

19 December 2018 

SDCL Energy Efficiency Income Trust plc  

("SEEIT" or the "Company") 

Acquisition of Seed Portfolio and Pipeline Update 
 

SDCL Energy Efficiency Income Trust plc is pleased to announce that the Company has completed the acquisition of the Seed Portfolio for a total cash commitment of £87 million. The terms of the acquisition are in accordance with the prospectus published by the Company on 22 November 2018 (the "Prospectus").

The Seed Portfolio comprises nine Energy Efficiency Projects valued at £57 million, which are predominately operational and well diversified across technologies and sectors with relatively low credit, technology and regulatory risk, together with three contracted investment commitments with identified Counterparties totalling c.£30 million, which have not yet been drawn down. The projects in the Seed Portfolio include Combined Cooling/Heating and Power Plants ("CCHP") at a Citi data centre and St Bartholomew's Hospital in London, as well as LED lighting projects for hundreds of Santander properties and over 100 NCP car parks in the UK.

The Company is targeting an initial target annual dividend yield of 5.0 per cent. by reference to the Initial Issue Price, rising to 5.5 per cent. in the year ending 31 March 2021, and a growing yield thereafter. It is the Company's intention to pay interim dividends to Ordinary Shareholders on a six-monthly basis. However, the Directors expect to declare an initial interim dividend in relation to the period from Initial Admission to 31 March 2019.

In addition, the Company has identified three pipeline project investment opportunities that it expects to acquire in the near term following Admission, namely:

·      a portfolio of CHP assets in Southern Europe;

·      a rooftop solar project for a large UK retailer; and

·      a portfolio of operational CHP projects in North-East USA.

The Company has now commenced due diligence on each of the projects with a view to progressing them to financial close as soon as practicable in 2019. The acquisitions will be financed through a combination of equity and acquisition debt finance.

Terms used in this announcement shall, unless the context otherwise requires, bear the meanings given to them in the Prospectus.

For Further Information

Sustainable Development Capital LLP Jonathan Maxwell Miles Alexander Keith Driver	T: [phone]
Jefferies International Limited Gary Gould Chris Dickinson Tom Hovanessian	T: [phone]
TB Cardew Ed Orlebar Emma Crawshaw	T: [phone] / E: [e-mail] M: [phone]

About SEEIT

SEEIT is the first listed company of its kind to capitalise on operational opportunities in the energy efficiency sector - a rapidly growing segment of the infrastructure market. 

SEEIT invests in projects driven by the opportunity to deliver lower cost, cleaner and more reliable energy solutions to end users of energy, as opposed to projects that depend on government concessions, subsidies, market incentives or energy markets for their returns.

SEEIT is managed by SDCL and will target a total return of 7-8 per cent. per annum with a targeted initial dividend yield of 5.0 per cent. by reference to the Initial Issue Price, rising to 5.5 per cent. in the year ending 31 March 2021 and a growing yield thereafter.

About SDCL

SDCL is a London based investment firm with a proven track record of investment in energy efficiency and decentralised generation projects in the UK, Continental Europe, North America and Asia. SDCL was founded in 2007 by Jonathan Maxwell, and since 2012, has raised over £500 million of capital commitments, including four funds exclusively focused on energy efficiency. SDCL's funds seek to invest in projects that deliver cheaper, cleaner and more reliable energy solutions directly to end users at the point of use and that generate returns based upon the energy savings achieved. This creates ongoing operational cost savings and carbon emission reductions as well as improvements to productivity and asset values. Headquartered in London, SDCL is authorised and regulated in the United Kingdom by the Financial Conduct Authority.

 

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