TIDMSEIT
RNS Number : 8003J
SDCL Energy Efficiency Income Tst
24 December 2020
24 December 2020
SDCL Energy Efficiency Income Trust plc
("SEEIT" or the "Company")
Acquisition of Solar and Storage Projects in the United
States
SEEIT is pleased to announce that it has agreed to acquire a
series of portfolios of commercial and industrial ("C&I")
on-site solar and energy storage projects in the United States,
together with a 50% interest in the platform that has created them,
Onyx Renewable Partners ("Onyx") from funds managed by Blackstone
("Blackstone") for a consideration of approximately $150 million.
Blackstone will remain a 50% partner in Onyx.
SEEIT will acquire a 100% interest in four portfolios totalling
over 175 MW, which provide renewable energy generated on-site
directly to the end-user, and a 50% interest in Onyx's follow-on
pipeline, which is projected to exceed 500MW over the next 5 years.
The four portfolios comprise over 200 operational, construction and
development stage rooftop, carport and 'private wire' ground
mounted solar PV projects, located in 18 US states. Clients include
municipalities, universities, schools, hospitals, military housing
providers, utilities and corporates.
The operational projects are contracted under long-term power
purchase agreements with predominantly investment grade C&I
counterparties. At present c.27% of the portfolio (by installed
MWs) are operational or near operational, with the remainder
expected to become fully operational over the next 12 to 18 months.
All projects benefit from robust contracts as to construction and
operations with experienced EPC and O&M subcontractors.
Onyx has a highly experienced and dedicated project development
and asset management team based in New York. It will develop and
manage further C&I on-site solar and energy storage projects in
the United States, which SEEIT will have a right of first refusal
to purchase at a pre-agreed rate of return. The investment provides
SEEIT with a substantial initial portfolio and a scalable pipeline
of opportunities in a major growth market. It also has strong
diversification benefits with investments being made in portfolios
of projects, including smaller projects under 5 MW as well as
larger projects of 5 to 15+ MW.
The Onyx projects are well aligned to SEEIT's investment policy
as they increase the supply of renewable energy generated on-site
and help to reduce greenhouse gas emissions arising from the
supply, distribution and consumption of energy. They deliver
cheaper, cleaner and more reliable energy solutions directly to the
end user. The investment will help SEEIT to achieve its total
returns targets - offering the opportunity for capital growth from
the pipeline as well as income - and to support its progressive
dividend policy.
The acquisition will be funded from existing cash reserves and
debt facilities. Onyx's existing project debt finance facilities,
which are equivalent to c.GBP27 million at acquisition, will remain
in place.
Completion of the acquisition is expected in the coming weeks,
after satisfaction of certain customary conditions and
consents.
Commenting on the acquisition, Jonathan Maxwell, CEO of
Sustainable Development Capital LLP, said: "We are delighted to
further diversify the SEEIT portfolio through the acquisition of
these on-site solar and storage projects and to partner with
Blackstone in one of the largest sustainable energy initiatives of
its kind in the United States. The projects will make a meaningful
impact to reduce the carbon footprint of commercial and industrial
clients across the United States by providing cheaper, cleaner and
more reliable energy directly at the point of use and is strongly
aligned with SEEIT's investment policy and objectives, as well as
the global climate policy agenda."
For Further Information
Sustainable Development Capital T: +44 (0) 20 7287 7700
LLP
Jonathan Maxwell
Purvi Sapre
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 UK listed
company of its kind to invest exclusively in the energy efficiency
sector. Since IPO, SEEIT has made nine investments and commitments
in a diversified portfolio of distributed generation and energy
efficiency projects totalling c.GBP500 million. The projects are
primarily located in the UK, Europe and North America and include,
inter alia, a portfolio of cogeneration assets in Spain, a
portfolio of recycled energy and cogeneration projects in the
United States and, most recently, a regulated gas distribution
network in Sweden.
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 102.0p per share as at 30
September 2020.
Further information can be found on the Company's website at
www.seeitplc.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 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.
Further information can be found on at www.sdclgroup.com .
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