Full article here (paywalled): https://www.ifre.com/story/2572752/sdcl-aims-for-80m-l8n2h43ch

13 Oct 2020 Arran Brown

London-listed SDCL Energy Efficiency Income Trust has launched a share placing with the aim of raising £80 million…

Full article here (paywalled): https://ijglobal.com/articles/150628/sdcl-fund-launches-share-placing

Tue, 13th Oct 2020 17:41

SDCL Energy Efficiency Income Trust PLC – London-based energy efficiency investor – Announces proposed GBP80 million placing priced at 105.0 pence per share. Plans to place approximately 76.2 million shares with the 105.0p price representing a 4.0% premium to its March 31 net asset value and 5.4% discount to its Monday closing price of 111.0p. Portfolio performing as expected, with asset valuations as at September 30 likely to be similar to Mach 31. Currently progressing opportunities with investments under exclusivity having a GBP100 million aggregate equity value and investments at advanced stages of due diligence or in bilateral negotiation having a GBP150 million aggregate equity value. Dividend target 5.5 pence per share for financial year ending March 2021.

Chair Tony Roper: “This proposed capital raise builds on the strong momentum [SDCL Energy Efficiency Income Trust] has achieved over the last two years. Energy efficiency is critically important in global efforts to address the climate emergency and has become an increasing focus for investors. The proceeds of this placing will allow SEEIT to continue to invest in this important and growing market whilst also delivering additional scale and diversification to shareholders.”

Current stock price: 106.00p; down 4.5% on Tuesday

Year-to-date change: down 1.4%

By Gavin Lumsden 14 Oct, 2020 at 09:59

A sub-sector in energy efficiency funds has emerged with Triple Point Energy Efficiency Infrastructure Company (TEEC) raising £100m and confirming it will list on the London Stock Exchange on Monday.

The new investment trust will sit alongside SDCL Energy Efficiency Income Trust (SEIT) which raised the same amount in December 2018 when it became the first investment company to specialise in running projects that save companies energy bills and cut their carbon emissions.

Not to be outdone by its new rival, yesterday the now £452m SEIT announced its third share issue since launch. It wants to raise £80m for its pipeline of new investments and is offering with new shares at 105p, a 4% premium to the last reported net asset value on 31 March and a 5.4% discount to their closing price on Monday.

Although Triple Point failed to hit its upper target of £200m it will be relieved to have achieved half that given the current stock market uncertainty and the fact that increasingly trusts below £100m fail to attract wealth managers which are the sector’s biggest buyers.

Like SEIT, TEEC is primarily an income fund, aiming to generate a 5.5% dividend yield on its 100p share price in its first year, as part of an annual total return to shareholders of 7-8%.

The successful flotation of another ‘alternative income’ fund contrasts with the Tellworth UK smaller companies trust which had to postpone its launch this month after failing to attract £100m, extending a trend of recent years which has seen infrastructure, debt and specialist property trusts attract much more money than conventional equity funds.

A total of 100m TEEC shares will start trading in London on Monday after the initial public offer (IPO) organised by RBC Capital Markets, Winterflood Securities and Akur Capital.

Although fund manager Triple Point is best known for its Social Housing (SOHO) real estate investment trust,  currently seeking to raise £70m in a fund raising, it has a ten-year record of investing in energy efficiency where it currently manages over £1.5bn in combined heat and power (CHP) projects, hydroelectricity, solar power and reserve peaking plants, areas where the new trust currently has a list of nearly £300m of eligible investments it could make.

For his part SEIT fund manager Jonathan Maxwell said he had over £100m of investments on which he was in exclusive talks and a further £150m at an advanced stage of due diligence.

Chairman Tony Roper said: ‘This proposed capital raise builds on the strong momentum SEIT has achieved over the last two years. Energy efficiency is critically important in global efforts to address the climate emergency and has become an increasing focus for investors. The proceeds of this placing will allow SEIT to continue to invest in this important and growing market whilst also delivering additional scale and diversification to shareholders.’

Investors who buy shares in the placing will be entitled to receive the next quarterly dividend declared in November. SEIT has a dividend target of 5.5p per share for the financial year to 31 March 2021, which offers a dividend yield of 5.2% at the 105p placing price.

Stifel analyst Max Haycock was surprised at the timing of the equity issue a month before half-year results that would have up-to-date financial information. ‘This is SDCL’s third equity issue in a year and the clear message is don’t buy the shares in the market on a high premium when there could be an equity issue around the corner. The shares traded at 111p yesterday [Monday] and the equity issue is at 105p. This habit of frequent equity issuance may temper the premium going forward.

The shares are half a penny up at 106.5p this morning.

IFM Investors has committed to reducing greenhouse gas emissions across all asset classes, targeting net-zero emissions by 2050.

Full article here (paywalled): https://www.environmental-finance.com/content/news/esg-news-round-up-imf;-seeit;-aegon-and-more.html

SDCL Energy Efficiency Income Trust (SEEIT) has targeted raising up to GBP 80m in fresh capital via an issue of new ordinary shares.

Full article here: https://energy-rev.com/2020/10/13/seeit-targets-gbp-80m-capital-raise/

SDCL Energy Efficiency Income has acquired a portfolio of energy efficiency projects in Singapore for an equity cash consideration of £2m. The portfolio consists of six operating assets, including chillers and bespoke energy-efficient air compressors that are installed at the premises of five industrial counterparties in Singapore, including subsidiaries of large multinational institutions. The total remaining portfolio life is 6 years and 10 months. The acquisition is the company’s first investment in Singapore and it plans to use this as a platform from which it can explore future opportunities in the region.

SEIT: Mkt Cap £462m | Prem/(disc) 11.7% | Div yield 5.1%

SDCL Energy Efficiency Income Trust expands into Singapore

CEP Staff • 2 October 2020

London-listed SDCL Energy Efficiency Income Trust (SEEIT) plc has struck its first deal in Singapore, acquiring a portfolio of six operational assets.

Full article here (paywalled): https://cleanenergypipeline.com/news/sdcl-energy-efficiency-income-trust-expands-into-singapore/

Link to Article

This investment in proven operational assets further diversifies SEEIT’s portfolio, in terms of geography, technology, counterparty and application.

LONDON: SDCL Energy Efficiency Income Trust has announced the acquisition of its first portfolio of energy efficiency projects in Singapore from Singapore Energy Efficiency Investments Pte. Ltd. (SEEPL) and associates for an equity cash consideration of £2 million.

The portfolio consists of six operating assets, including chillers and bespoke energy-efficient air compressors that are installed at the premises of five leading industrial counterparties in Singapore, including subsidiaries of large multinational institutions. The total remaining portfolio life is 6 years and 10 months.

This investment in proven operational assets further diversifies SEEIT’s portfolio, in terms of geography, technology, counterparty and application.

Importantly, the acquisition represents SEEIT’s first energy efficiency investment in Singapore and, together with SDCL’s presence in the region, provides a platform from which the Company can explore future opportunities in this and other attractive jurisdictions in the region.

The acquisition constitutes a smaller related party transaction, falling within the scope of Listing Rule 11.1.10R as the Company’s Investment Manager, Sustainable Development Capital LLP (“SDCL”) and its associates, have an interest in SEEPL. The Board of Directors of the Company took independent valuation advice when negotiating this acquisition. The acquisition has been funded through existing cash reserves and is expected to contribute positively to SEEIT’s total returns.

SDCL’s CEO, Jonathan Maxwell, said: “With this investment, SEEIT establishes a portfolio in Singapore from which it can scale up to address other opportunities in the country and the region. We are investing into the decarbonisation of manufacturing in the region, including cooling efficiency, where air conditioning and refrigeration management have been demonstrated to offer the largest and most cost-effective potential for greenhouse gas emission reductions”.

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 seven investments and commitments in a diversified portfolio of distributed generation and energy efficiency projects totalling c.£375m.

The projects are located in the UK, Europe and North America in broadly equal proportions 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, investments and commitments in operational and construction assets in the UK.