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SDCL Energy Efficiency Income looking to raise £100m

SDCL Energy acquires 50% stake in US energy portfolio for $110m

SDCL Energy Efficiency Income looking to raise £100m – SDCL Energy Efficiency Income (SEIT) has announced a proposed placing to raise around £100m through an issue of new ordinary shares at a price expected to be in the range of 113 pence to 117 pence per new ordinary share.

In addition to the placing, SEIT intends to make an offer of new ordinary shares available on the REX platform, in which retail investors will be invited to participate. The maximum aggregate size of the retail offer will be capped at the sterling equivalent of €8m.

SEIT continues to see a number of ‘organic’ investment opportunities to make further or follow-on investments into projects or frameworks within its existing portfolio as well as specific asset management initiatives at an individual project level. In addition to this, the company has a broader pipeline of new investment opportunities that it is currently reviewing. This includes a 12 month pipeline of potential investments totalling over £400m, which includes over £175m of organic follow-on opportunities and the remainder being new acquisition opportunities in various stages of due diligence.

Following the expected completion of its recent c.£100m acquisition of United Utilities Renewable Energy (due shortly), as well as approximately £80m of commitments to eight different organic follow-on opportunities expected to arise over the next 12 months, SEIT will have committed all of its available cash and substantially committed its £145m RCF.

Jefferies will immediately commence a book-building process to determine the level of demand from potential investors for participation in the placing. To bid in the book-build, investors should communicate their bid (or bids) by telephone to their usual sales contact at Jefferies. Each bid should state the number of shares wanted to subscribe and the price or prices that the prospective investor is offering to pay. Any bid price must be for a full pence or half pence amount.

Both the REX retail offer and the placing are conditional on the new ordinary shares being admitted to the premium listing segment of the Official List and to trading on the Main Market of the London Stock Exchange. Admission is expected to take place on 9 September 2022. Completion of the REX Retail Offer is conditional, inter alia, upon the completion of the placing.

Statement from the chair:

SEIT has continued to perform during a period of significant volatility in the energy sector and the wider economy. Its differentiated approach to reducing energy costs provides solutions which improve resilience for our counterparties. Against a backdrop of rising energy prices and growing concerns around climate change and energy security, energy efficiency is now higher up the global agenda than ever before.

SEIT has a substantial pipeline of opportunities, both from new investments and from ‘organic’ follow-on investments arising from its existing portfolio projects. SEEIT remains focused on identifying and pursuing investment opportunities that can help enhance income and capital growth, as well as further diversify its existing portfolio. Having committed all of its existing cash and a substantial portion of its undrawn RCF, this fundraise allows SEEIT to invest in a number of these opportunities while maintaining capital discipline.

SEIT : SDCL Energy Efficiency Income looking to raise £100m

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