Update on Activities

RNS Number : 7826L

Triple Point Energy Efficiency

15 January 2021

 

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15 January 2021

Triple Point Energy Efficiency Infrastructure Company plc

("TEEC" or the "Company" or together with its subsidiaries, the "Group")

Update on activities

Triple Point Energy Efficiency Infrastructure Company plc, a closed-ended investment company investing in a diverse portfolio of Energy Efficiency assets in the United Kingdom, is pleased to provide an update on its activities.

Pipeline update

Headline terms for its first investment into energy efficient heat distribution assets, represented by the target CHP+ portfolio identified at IPO, are now agreed subject to final documentation and final specific conditions precedent. This is expected to deploy c.£20m of the IPO proceeds. The transaction has been updated since the opportunity was first presented in the IPO prospectus, such that the Company now intends to provide senior debt finance to be secured against the CHP+ assets, rather than acquiring the associated equity interests. The Company considers this to be an attractive investment proposition which, on completion, will generate a return within the target range while providing a greater level of security.

The current wider pipeline includes many of those prospective investments identified at IPO, and a number of high quality investment opportunities are now progressing towards an advanced stage, including a large energy generation and heat distribution project, a portfolio of social housing energy efficiency retrofit assets, and a portfolio of industrial energy efficiency assets.

Each of the contemplated investments aligns with the Company's targeted risk/return profile and objective of delivering secure investments that facilitate the transition to a low carbon economy in accordance with the UK government's overall environmental targets.

Personnel changes

The Investment Manager also wishes to announce relevant personnel changes. Charles Herriott will be leaving the Investment Manager on 29 January on good terms, and is being replaced by two senior investment professionals: Edmund Arulanandam and Jonathan Hick. Edmund and Jonathan have considerable relevant experience and will join the Investment Manager on 1 February 2021 and 4 April 2021, respectively.

About Edmund Arulanandam

Edmund has significant origination, execution, and asset management experience across sustainable energy and infrastructure investments. Edmund was previously at Vantage Infrastructure, a sustainable infrastructure investment manager; and before that with the UK Energy and Infrastructure Investments division at the Department for Business, Energy & Industrial Strategy; Bluewater Energy LLP; Riverstone LLC; and Goldman, Sachs & Co.

About Jonathan Hick

Jonathan is an ACA qualified investment professional with a strong background in leading the investment process from origination and execution through to asset management in the clean technology and renewable energy sector. Jonathan was previously an Investment Director at Armstrong Capital (an investment manager in the clean energy sector), and before that with: KPMG; Social and Sustainable Capital (SASC); ClearlySo; and PwC.

Both Edmund Arulanandam and Jonathan Hick will support Jonathan Parr in delivering the investment management services to the Company.

John Roberts, the Company's Chairman, said:

"We are delighted to be taking a significant step closer to deploying the first of the Company's IPO proceeds into high-quality assets. The proposed investments are aligned with the Company's focus on building a diversified portfolio of energy efficiency assets with a positive environmental impact.

I am confident that Triple Point, the Company's Investment Manager, will continue to progress the execution of our attractive pipeline of investment opportunities in the fast-growing energy efficiency sector . We are deploying the net proceeds from our IPO in line with delivery of the Company's target return of 7-8% and a dividend yield target of 5.5 pence per share in our first full financial year. We continue to target a first interim dividend of 2 pence per share in respect of the period from IPO to 31 March 2021."*

* The target return and target dividends are targets only and not a forecast. There can be no assurance that the targets will be met and it should not be taken as an indication of the Company's expected or actual future results.

For further information, please contact:

Triple Point Investment Management LLP Jonathan Parr	(via FTI below)
Akur Limited (Financial Adviser) Tom Frost Anthony Richardson Siobhan Sergeant	020 7493 3631
RBC Capital Markets (Joint Broker) Matthew Coakes Duncan Smith Jill Li Max Avison	020 7653 4000
Winterflood Securities (Joint broker) Neil Langford Hande Derinkok	020 3100 0000
FTI Consulting Ed Berry Mitch Barltrop	07703 330 199 07807 296 032

LEI: 213800UDP142E67X9X28

Further information on the Company can be found on its website: www.tpenergyefficiency.com .

NOTES:

CHP+ combines the generation of electricity with the use of waste heat, which is a byproduct of the combined heat and power process, together with further additional services such as cooling or the supply of carbon dioxide for agricultural purposes, further increasing the efficiency of the equipment.

The Company is a recently incorporated investment trust which invests exclusively in a diversified portfolio of Energy Efficiency assets in the UK, which have a positive environmental impact and which facilitate the transition to a low carbon economy in accordance with the UK government's overall environmental targets. The Company's investments focus on the core sectors of: low carbon heat distribution; social housing retrofit and industrial energy efficiency; and distributed generation.

The Investment Manager is Triple Point Investment Management LLP ("Triple Point") which is authorised and regulated by the Financial Conduct Authority. Triple Point manages private, institutional and public capital, and has a proven track record of investment in Energy Efficiency and decentralised energy generation projects. In 2018, Triple Point was appointed as the Delivery Partner to BEIS, a department of the UK government, to deliver the £320 million Heat Networks Investment Project ("HNIP").

The Company was admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange on 19 October 2020 and was awarded the London Stock Exchange's Green Economy Mark.

 

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