TIDMSEIT
RNS Number : 0433T
SDCL Energy Efficiency Income Tst
22 November 2021
22 November 2021
SDCL Energy Efficiency Income Trust plc
("SEEIT" or the "Company")
Investment in a LED Lighting Portfolio and Lighting Solutions
Business
SEEIT is pleased to announce that it has invested approximately
$21 million in an operational portfolio of LED lighting projects
across 42 states in the United States, together with a 50% interest
in Future Energy Solutions Lighting Holdings LLLP ("FES"), the
business that developed the projects. SEEIT's investment
incorporates a shareholder loan, with a priority entitlement to
cash flows from the business, ahead of equity distributions, until
the loan principal has been repaid.
FES provides energy efficient lighting solutions to enterprises
across the US, in exchange for fixed monthly payments, using an
innovative Lighting as a Service model. Services include designing,
delivering, installing, and maintaining LED lighting for
counterparties to save on energy and maintenance costs as part of a
long- term partnership with our customers.
FES's operational portfolio consists of over 1,000 customers
from a variety of sectors, including schools, hotels, retail
outlets, car parks, car dealerships, supermarkets, and casual
dining, among others. The customer base consists mostly of small
and medium sized enterprises. FES has an established management
team, with an extensive pipeline of opportunities in the US
supported by a sales force with a strong track record.
The investment aligns well with SEEIT's investment policy, given
its strong energy efficiency characteristics, while adding further
diversification to SEEIT's portfolio. LED lighting systems
typically produce 100,000+ hours of illumination and consume up to
90% less energy than traditional incandescent light bulbs, leading
to greatly reduced energy expenditures for users. The associated
environmental benefits include a significant reduction in CO2
emissions relative to traditional lighting technology, as well as
longer lighting life span of the bulbs, leading to lower overall
waste. The transaction adds to the Company's existing investments
in LED lighting, including Santander UK lighting, Moy Park lighting
and projects within Spark US Energy Efficiency. In parallel to this
investment, SEEIT has also been granted a right of first refusal to
fund a GBP150 million plus pipeline of European projects with an
affiliate of FES through a bilateral negotiation.
The investment is funded from the Company's existing resources
and supports SEEIT's guidance on total returns target as well as
its stated progressive dividend policy.
Commenting on the investment, Jonathan Maxwell, CEO of
Sustainable Development Capital LLP, said: "Switching to LED
lighting is one of the simplest and most readily available changes
that can be made to reduce CO2 emissions. Lighting accounts for
nearly 5% of global CO2 emissions. LED lighting can achieve energy
savings of up to 90% in comparison to traditional lighting,
benefitting the environment and reducing costs for business. We
expect the 'Lighting as a Service' market to grow considerably in
the coming years, in both the US and Europe, and this presents a
very attractive investment opportunity for SEEIT that meets its
yield and returns targets."
Commenting on the investment, Peter Hawksworth, CEO of Future
Energy Solutions, said: "Partnering with SEEIT in the USA and
Europe, allows FES to grow across all our areas of expertise and
use the Lighting as a Service model to influence and achieve
positive change in business sectors, where our customers can make
significant and instant savings alongside a reduction in carbon
footprint and simplify their operational performance."
For Further Information
Sustainable Development Capital T: +44 (0) 20 7287 7700
LLP
Jonathan Maxwell
Purvi Sapre
Eugene Kinghorn
Tom Hovanessian
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 a constituent of the
FTSE 250 index. It was the first UK listed company of its kind to
invest exclusively in the energy efficiency sector. Its 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 commercial and industrial solar and storage projects
in the United States, a regulated gas distribution network in
Sweden and a district energy system providing essential and
efficient utility services on one of the largest business parks 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 5.62p per share in respect of the financial year to 31 March
2022. SEEIT's last published NAV was 102.5p per share as at 31
March 2021.
Past performance cannot be relied on as a guide to future
performance.
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 .
About Future Energy Solutions
FES is an innovative global green technology company that
provides funded and capital purchase lighting solutions for large
scale commercial and industrial businesses. The FES service
includes surveying, designing, analysing, procuring, project
managing, installing, and maintaining new energy efficient lighting
systems. Formed in 2009 in the United States, FES has grown into a
family of companies around the globe. The UK office opened in April
2013 and has since installed over 300,000 energy efficient
luminaries across several client portfolios, with an additional
presence in Mainland Europe.
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