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 .

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