SDCL Energy Efficiency Income Tst Further investment in Primary Energy (3811K)
January 04 2021 - 01:00AM
UK Regulatory
TIDMSEIT
RNS Number : 3811K
SDCL Energy Efficiency Income Tst
04 January 2021
4 January 2021
SDCL Energy Efficiency Income Trust plc
("SEEIT" or the "Company")
Further investment in Primary Energy
SEEIT is pleased to announce that it has acquired an additional
15% interest in Primary Energy, a portfolio of recycled energy and
cogeneration projects located in Indiana, USA, from a consortium
led by Fortistar LLC ("Fortistar") for an equity cash consideration
of approximately $ 36 million.
SEEIT acquired an initial 50% interest in Primary Energy in
February 2020. Following this acquisition, SEEIT's interest in
Primary Energy is now 65%. SEEIT has also agreed terms under which
it could increase its stake and further enhance returns for
shareholders.
The 298MW portfolio consists of five operating projects which
generate low-cost, efficient energy with substantial environmental
benefits via three recycled energy projects, one natural gas
combined heat and power project and a 50% interest in an industrial
process efficiency project.
The portfolio projects are located within the Indiana Harbor
Works and involve two of the most efficient and advanced steel
mills in the United States. Four of the five projects relate to
steel mills that are now owned by Cleveland-Cliffs Inc.
("Cleveland-Cliffs") following its acquisition of ArcelorMittal
USA, making Cleveland-Cliffs the largest flat-rolled steel producer
as well as the largest iron ore pellet producer in North America.
One of the five projects services Midwest Steel, a subsidiary of
United States Steel Corporation. The projects are fully integrated
into the steel mill facilities, including fuel handling and
emissions control equipment and systems that are critical for the
operations of the facilities.
The acquisition is funded from existing cash reserves. Primary
Energy's existing project debt finance facilities, which are
equivalent to c.$186 million, will remain in place.
Commenting on the acquisition, Jonathan Maxwell, CEO of
Sustainable Development Capital LLP, said: "We are pleased that
SEEIT is increasing its stake in Primary Energy, which provides
critical and cost-effective low carbon energy services to key
industrial sites. Industrial energy efficiency is a key focus for
SEEIT and is a major source of greenhouse gas emission reductions
as well as productivity gains. The investment follows a period of
substantial growth and diversification in SEEIT's investment
portfolio and is made within the context of an improved market
background and outlook".
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
M: +44 (0) 7738 724 630
Ed Orlebar E: SEEIT@tbcardew.com
Joe McGregor
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 with total assets of approximately GBP600m. 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, a regulated gas distribution network in Sweden and,
most recently, a portfolio of commercial and industrial solar and
storage projects in the United States.
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 .
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQGZGGMLFVGMZM
(END) Dow Jones Newswires
January 04, 2021 02:00 ET (07:00 GMT)
Sdcl Energy Efficiency I... (LSE:SEIT)
Historical Stock Chart
From Feb 2024 to Mar 2024
Sdcl Energy Efficiency I... (LSE:SEIT)
Historical Stock Chart
From Mar 2023 to Mar 2024