SDCL Energy Efficiency Income makes $22m loan investment – SDCL Energy Efficiency Income (SDCL) has announced a $22m investment, structured as a portfolio of secured senior and subordinated loans, into a diversified portfolio of contracts. The investment includes a portfolio of loans, leases and subscription agreements relating to energy systems outsourcing and energy efficiency projects located across the USA, which have been developed by Sparkfund, a US-based energy systems-as-a-service company.
SDCL notes that Sparkfund delivers energy systems-as-a-service to commercial and industrial buildings through a network of US-based and global energy companies. Energy systems-as-a-service is provided through a subscription model, with customers benefiting from reduced costs, improved comfort and reliability.
Further notes from the announcement include:
- The substantial majority of SDCL’s investment is senior debt relating to the underlying portfolio of energy systems projects, with energy saving technology under management including LED lighting, HVAC, backup generators, and monitoring and controls. The balance of the investment represents subordinated loans supported by the portfolio;
- The investment will be funded from the fund’s existing cash reserves. Returns from the portfolio are in line with SDCL’s total returns targets and supports its stated dividend policy.
SDCL launched in December 2018; we looked at its inaugural results earlier in June (click here to read this).
About SDCL
SDCL’S investment business is focused on clean energy and energy efficiency project finance. SDCL has established specialist funds in the UK, Ireland and Singapore and is launching new funds in New York and China. SDCL’s funds in each country are in partnership with governments as an investor, promoter or guarantor. The funds invest in energy efficiency retrofit projects and seek a return based on savings achieved. This generates ongoing operational cost savings and carbon emission reductions as well as improvements to productivity and asset values, in compliance with current and prospective building regulations.
SDCL: SDCL Energy Efficiency Income makes $22m loan investment
Click here to subscribe for free equity research on investment trusts, funds and listed companies.