Gore Street Energy Storage is holding a meeting of its shareholders on Monday 11, April 2022. Shareholders will be voting on proposed changes to the investment policy, and a proposed new initial issue and share issuance programme. The company intends to significantly increase the size of its portfolio and execute against its exclusive near-term pipeline of investments across the UK, US and EU in order to capitalise on the continued growth in demand for energy storage assets which are increasingly significant infrastructure projects for ongoing energy security in the UK and internationally.
Proposed change of investment policy
(i) enable the company to invest a greater percentage of its assets into project opportunities outside the UK and the Republic of Ireland permitting it to take advantage of the investment manager’s considerable pipeline of energy storage opportunities in other markets; (ii) increase the limit on borrowings; and (iii) clarify the approach to currency hedging.
Dividend policy update
Since IPO, the company has targeted dividends of 7% of NAV and it will continue with this policy, but will tweak it a little. For the last two financial years, the dividend has been 7p. Effective for the quarter to 31 March 2022, the company will target dividends in each financial year based on a 7% yield on the average NAV during that financial year, subject to a minimum target of 7p in each financial year.
The annual target dividend will increase by 0.5p increments in line with increases in the NAV. Dividends are paid quarterly.
The statement includes a caveat that the payment of dividends is at the discretion of the board and the directors may resolve to pay dividends otherwise than in accordance with the targets noted above in order to reflect the company’s expected returns and future plans for the growth of the company.
Proposed share issuance programme
The company is proposing to issue up to 750m new ordinary and/or C shares in an initial issue, comprising an initial placing, offer for subscription and intermediaries offer, and thereafter a 12‑month share issuance programme. Shares will be issued at least at NAV plus a premium to cover the expenses of such issue.
GSF : Gore Street plans dividend shake up and fundraise