SDCL Energy Efficiency Income (SDCL) has announced a £40m placing at 104p per share. The placing price represents a discount of approximately 5.5% SDCL’s closing price on 17 December 2019 of 110p per share, and a premium of approximately 5.1% to the trust’s NAV per share of 99.0p as at 30 September 2019. The placing was announced after the market closed on 17 December 2019 and closes at 1.00pm on 18 December 2019.
Background to the placing
SDCL highlights that it has announced a number of significant acquisitions since its admission on 11 December 2018. Most recently, it announced on 6 November 2019 that it had completed the acquisition of a significant cogeneration portfolio in Spain for €150 million from Sacyr S.A., a leading Spanish construction group. SDCL says that it continues to have a healthy and diverse pipeline of energy efficiency investment opportunities and intends to use the net proceeds of the placing, together with existing cash reserves, to assist in funding the acquisition of certain identified project assets. It says that, in particular, it has entered into an exclusivity arrangement in relation to an acquisition of a substantial interest in a portfolio of energy efficiency and cogeneration projects located in the US. Existing project debt finance facilities are expected to remain in place as part of the potential acquisition and would be taken into account in the calculation of SDCL’s own gearing ratios and borrowing restrictions.
Managed by Sustainable Development Capital
SDCL’s portfolio is managed by Sustainable Development Capital, an investment boutique that runs a number of clean energy and efficiency funds for institutional investors in the UK, US, Asia and Europe. Sustainable Development Capital’s investment business is focused on clean energy and energy efficiency project finance. It has established specialist funds in the UK, Ireland and Singapore and is launching new funds in New York and China. Its 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.
More information can be found at the trust’s website: www.sdcl-ib.com/energy-efficiency-investments/