TIDMSEIT
RNS Number : 2871V
SDCL Energy Efficiency Income Tst
06 August 2020
6 August 2020
SDCL Energy Efficiency Income Trust plc
("SEEIT" or the "Company")
First investment commitment to electric vehicle (EV) charging
infrastructure
SEEIT, the first UK-listed investment company of its kind to
invest exclusively in the energy efficiency sector, is pleased to
announce that it has entered into an agreement with Electric
Vehicle Network Limited ("EVN") to acquire an initial 112 rapid and
ultra-fast EV charging stations across the UK for a total
consideration of up to GBP50 million.
The EV charging sites will be developed and funded by EVN to the
point at which they are contracted and construction ready, at which
stage they will be acquired by SEEIT. The commitment of up to GBP50
million will be drawn down in tranches to fund the implementation
of projects, with the first draw down of capital expected to take
place later this year with the full balance of up to GBP50 million
expected to be deployed over the next 12-18 months.
The construction period for each project is expected to be
around 6 -12 weeks, at which point projects become operational and
are expected to generate availability-based revenues.
Once operational, the EV charging sites will be contracted
through 20-year, fixed price, CPI inflated Energy Service
Agreements ("ESAs") to Charge Point Operators ("CPOs"), which are
typically investment grade utility companies. The EV Charging sites
will also enter into long-term land-lease agreements with the
site-owners, which are large, established forecourt or car park
operators on the same basis. EVN, through its subsidiaries, will
also manage the construction and operation of the assets, via asset
management and maintenance contracts in accordance with the period
and terms of the ESAs.
This project was identified as a target investment in the SEEIT
Prospectus in June 2020 and represents the Company's first project
in EV charging infrastructure. The project is consistent with
SEEIT's investment policy by bringing competitively priced, cleaner
and more efficient energy directly to the point of use and making
efficient electric vehicle charging equipment more widely
available.
Having followed the EV charging infrastructure business for
several years, SDCL believes that this project represents the first
opportunity to invest in EV charging assets under a framework
similar to availability style infrastructure projects, with
long-term pre-determined service fee revenues. In addition to the
initial 112 sites, EVN has plans to develop a further c.380 EV
charging sites, requiring an additional c.GBP150 million in the
next 36 months, for which SEEIT has a right of first
negotiation.
SEEIT is delighted to be partnering with EVN, which was founded
in 2017 and is a dedicated EV charging infrastructure development
company that seeks to address the challenges faced by both
landlords and charge point operators in rolling out a network of EV
charging infrastructure in the UK.
Commenting on the project, Jonathan Maxwell, CEO of SDCL, said:
"There is a growing need for charging infrastructure in the UK as
we transition towards more efficient fuel choices that reduce harm
to our environment. We identified EV charging infrastructure as a
target area in our June 2020 Prospectus and are pleased to have
this opportunity to invest. EVN's unique business model offers CPOs
charging infrastructure as a service. This fits our model of
investing in availability-based services with strong
counterparties. Project revenues will be generated from energy
services agreements with predictable costs, presenting the
opportunity for a stable and predictable investment for SEEIT and
one we are delighted to add to our portfolio. This will also
provide further diversification in terms of technology,
counterparty and application."
For Further Information
Sustainable Development Capital T: +44 (0) 20 7287 7700
LLP
Jonathan Maxwell
Purvi Sapre
Eugene Kinghorn
Keith Driver
Jefferies International Limited T: +44 (0) 20 7029 8000
Tom Yeadon
Gaudi le Roux
TB Cardew T: +44 (0) 20 7930 0777
Ed Orlebar M: +44 (0) 7738 724 630
Joe McGregor E: SEEIT@tbcardew.com
About SEEIT
SDCL Energy Efficiency Income Trust plc is the first listed
company of its kind to invest exclusively in the energy efficiency
sector. Examples of the projects in the portfolio include combined
cooling/heating and power plants, as well as energy efficiency
projects in the UK and the US. Since acquisition of its seed
portfolio at IPO, the Company has announced investment in a
diversified portfolio of energy efficiency assets, including a
portfolio of rooftop solar photovoltaic projects for Tesco in the
UK and a portfolio of cogeneration assets in north east United
States, which were identified as pipeline projects in its IPO
prospectus, as well as an additional investment in a portfolio of
energy efficiency loans in the United States, a portfolio of
cogeneration assets in Spain and a portfolio of recycled energy and
cogeneration projects in the United States.
The Company's total assets are primarily allocated across the
UK, Europe and North America in broadly equal proportions.
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 GBP1.00 per Ordinary
Share), with a stable dividend income, capital preservation and the
opportunity for capital growth. The Company is targeting a dividend
of 5.5p per share in respect of the financial year to 31 March
2021. SEEIT's last published NAV was 101.0p per share as at 31
March 2020.
Further information can be found on the Company's website at
www.sdcleeit.com.
Investment Manager
SEEIT's investment manager is Sustainable Development Capital
LLP ("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 the group 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.
About The EV Network (EVN)
Founded in 2017, The EV Network (EVN) is a leading independent
EV charging infrastructure development company. EVN's mission is to
address the challenges faced by both landlords and charge point
operators (CPOs) in rolling out a network of rapid and ultra-fast
EV chargers and charging infrastructure in the UK.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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