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SDCL Energy Effcncy. (SEIT)

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Tuesday 26 October, 2021

SDCL Energy Effcncy.

Company Update

RNS Number : 2001Q
SDCL Energy Efficiency Income Tst
26 October 2021
 

26 October 2021

SDCL Energy Efficiency Income Trust plc
("SEEIT" or the "Company")

Company Update

SDCL Energy Efficiency Income Trust plc, the first London Stock Exchange listed investment company of its kind to invest exclusively in the energy efficiency sector and which is managed by Sustainable Development Capital LLP ("SDCL"), is pleased to provide an update on recent investment and financing activity .

 

The LYCRA Company

SEEIT has made an investment commitment of c.£3 million to implement, finance and own the replacement of an energy efficient chiller system at The LYCRA Company's Singapore facility.  Construction has commenced and commissioning of the system is expected to occur in early 2023.

ENGIE Services Singapore is the delivery partner of the turnkey project, providing design, procurement, shipping, installation and testing of the proven technologies.

The project has robust emission savings characteristics through the upgrade to a more energy efficient cooling system. Improving the efficiency of refrigeration and air conditioning represents one the largest and cheapest sources of greenhouse gas emissions globally. This investment was the first of its kind to be developed in conjunction with the Kigali Cooling Efficiency Program (K-CEP), which is a philanthropic collaboration launched in 2017 to support the Kigali Amendment of the Montreal Protocol and the transition to efficient, clean cooling solutions.

 

Sustainable Living Innovations

SEEIT has made a c.$5 million debt investment alongside other investment partners to fund the energy efficiency measures in the 303 Battery Street building in Seattle, US.

The project entails a 15-story, 112 units Net Zero Energy apartment building designed and constructed by Sustainable Living Innovations ("SLI") which, when completed, will be the greenest apartment building in Seattle and is expected to be certified as the first Net Zero Energy multifamily high-rise building in the world. In its first year, the greenhouse gas emissions saved by the project are expected to be the equivalent of over 100,000 gallons of diesel fuel consumption.

Project construction is expected to be completed within twelve months and a sale of the building has been pre-agreed with one of the largest multi-family real estate investment trusts in the United States, Equity Residential.

The investment contributes to the direct energy efficiency systems, solar and control systems in the building, which collectively support the Net Zero Energy designation.

 

EV Network

The EV Network offers a turn-key solution to develop, fund and build publicly accessible electric vehicle ("EV") charging stations in the UK and is already working with leading Charge Point Operators ("CPOs"), as previously announced.

SEEIT is pleased to announce that it has entered into an agreement via EV Network with ESB Energy, to significantly expand its network of convenient ultra-fast EV charging infrastructure across the U.K.

The new agreement is expected to deliver a significant number of rapid and ultra-fast EV charging sites in high-traffic areas at strategically selected locations. The development of the network will be carried out by The EV Network, a leading infrastructure development company in the EV UK market.

ESB Energy already has a network of 400 fast and rapid chargers in the UK with a strong presence in London, Birmingham and Coventry offering EV drivers a reliable and hassle-free service. All ESB chargers are powered by 100% renewable energy.

The ESB Energy roll-out will be funded as part of the initial £50 million investment commitment to The EV Network previously announced.

 

Debt financing at project level

 

SEEIT has recently completed two project level financings, arranged and managed by the Investment Manager.

§ In the Gasnätet project, the existing debt financing has been replaced with a new 10-year financing at significantly improved terms and in the process releasing c.£25 million of cash to SEEIT to re-invest in the strong pipeline identified by the Investment Manager.

§ As part of the recently announced acquisition of the incremental 35% stake in the Primary Energy portfolio, the Investment Manager arranged US$50 million of new financing at the Project HoldCo level for this project.

 

The total debt (both at project and Company HoldCo level) after the recent debt financing activity is approximately 35% of NAV, of which nil is at the Company's HoldCo level following the repayment of all amounts outstanding in September 2021.  

 

 

Jonathan Maxwell, CEO of Sustainable Development Capital LLP, said:   "We are pleased to provide this update on SEEIT's recent activity after a busy period, during which we completed our latest fund-raising. The investment in the LYCRA project demonstrates the value of SDCL's relationships in Asia, which provides for the continued sourcing of compelling energy efficient projects in the country and wider region, here focussed on the crucial topic of cooling. The SLI investment is exciting as it represents a world first in energy efficient residential housing. Finally, the agreement with ESB Energy and our ongoing partnership with The EV Network is a commitment to address current challenges facing energy efficiency and pollution prevention in the transport sector, as well as the much publicised need to invest in the UK's EV charging infrastructure capability to enable the uptake and servicing of electric vehicles."

 

For Further Information

 

Sustainable Development Capital LLP

Jonathan Maxwell

Purvi Sapre

Eugene Kinghorn

Tom Hovanessian

 

T: +44 (0) 20 7287 7700

 

Jefferies International Limited

Tom Yeadon

Gaudi Le Roux

Neil Winward

 

T: +44 (0) 20 7029 8000

 

TB Cardew

Ed Orlebar

Joe McGregor

T: +44 (0) 20 7930 0777

M: +44 (0) 7738 724 630

E: [email protected]

 

 

About SEEIT

 

SDCL Energy Efficiency Income Trust plc is the first UK listed company of its kind to invest exclusively in the energy efficiency sector. Its projects are primarily located in the UK, Europe and North America and include, inter alia, a portfolio of cogeneration assets in Spain, a portfolio of commercial and industrial solar and storage projects in the United States, a regulated gas distribution network in Sweden and a district energy system providing essential and efficient utility services on one of the largest business parks in the United States.

The Company aims to deliver shareholders value through its investment in a diversified portfolio of energy efficiency projects which are driven by the opportunity to deliver lower cost, cleaner and more reliable energy solutions to end users of energy.

The Company is targeting an attractive total return for shareholders of 7-8 per cent. per annum (net of fees and expenses and by reference to the initial issue price of £1.00 per Ordinary Share), with a stable dividend income, capital preservation and the opportunity for capital growth. The Company is targeting a dividend of 5.62p per share in respect of the financial year to 31 March 2022. SEEIT's last published NAV was 102.5p per share as at 31 March 2021.   Past performance cannot be relied on as a guide to future performance.

Further information can be found on the Company's website at www.seeitplc.com .

Investment Manager

 

SEEIT's investment manager is SDCL, an investment firm established in 2007, with a proven track record of investment in energy efficiency and decentralised generation projects in the UK, Continental Europe, North America and Asia.

 

SDCL is headquartered in London and also operates worldwide from offices in New York, Dublin, Madrid, Hong Kong and Singapore. SDCL is authorised and regulated in the UK by the Financial Conduct Authority.

 

Further information can be found at www.sdclgroup.com .

 

 

 

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