SDCL Energy Efficiency Income Trust plc  

The Board is pleased to announce that the placing of New Ordinary Shares pursuant to the Company’s existing Share Issuance Programme (the “Placing”) announced on 13 October 2020 has received a strong level of support from investors and has been significantly oversubscribed.

Taking into account the strength of the Company’s near-term acquisition pipeline, as well as further positive progress with the negotiations to acquire an established, operational and regulated energy network in a major Western European city (the “Target Asset”), the Board has determined to increase the size of the Placing from gross proceeds of £80 million to £105 million by re-allocating New Ordinary Shares available under the Share Issuance Programme to the Placing. Accordingly, the Placing will result in the issue of 100 million New Ordinary Shares at the Placing Price of 105 pence per share.

As applications for the New Ordinary Shares have exceeded the gross proceeds accepted, a scaling back exercise has taken place.

Tony Roper, Chairman of SDCL Energy Efficiency Income Trust plc said:

“We are grateful for the strong support we have received from both new and existing investors. Given the strength of investor demand and the progress we have made with our near-term acquisition pipeline, we have increased the amount raised to £105m from £80m. The new funds will allow SEEIT to continue to invest in energy efficiency projects that are essential for reducing carbon emissions, while delivering stable and attractive returns for our investors, as we further expand and diversify our portfolio.”

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SDCL Energy Efficiency Income Trust plc, the first UK-listed investment company of its kind to invest exclusively in the energy efficiency sector, has agreed to acquire a 100% interest in Värtan Gas Stockholm AB (“VGSAB”), the ultimate owner of the established, operational and regulated gas distribution network for Stockholm, Sweden, involving an equity investment of approximately £100 million.

The VGSAB group (the “Group”) owns and operates Stockholm’s regulated gas grid, the majority of which is sourced from locally produced biogas (c.70%). The Group supplies and distributes to over 58,000 residential, commercial, industrial, transportation and real estate customers in Stockholm. It is an essential infrastructure service that helps to reduce pollution and greenhouse gas emissions by reducing and reusing waste gases both at the point of production, for example at municipal waste water treatment plants and, at the point of use, through the displacement of natural gas in buildings and diesel in transport. SEEIT intends to work towards increasing the proportion of green gas in the network to 100% over time. The grid is an essential component of an integrated system, aligned with national and regional strategies to attain carbon neutrality by 2040.

The Group’s revenues, which are primarily regulated, are predominantly based on fixed tariffs with relatively low sensitivity to customer demand or consumption. The Investment Manager believes that, in addition to existing revenues, there are opportunities for growth, for example from serving new transport customers, as commercial and municipal vehicle fleets continue to switch to cleaner fuels, including biogas. In addition, there are opportunities to deliver new energy and infrastructure services to customers by developing the network and through vertical integration.

Commenting on the acquisition, Jonathan Maxwell, CEO and Founder of Sustainable Development Capital LLP, said:

“SEEIT is making an investment in an important infrastructure asset for the City of Stockholm. It provides an attractive opportunity for SEEIT to invest in an established energy network that helps with greenhouse gas emission reductions and for SEEIT to help make it greener. The operational investment offers the opportunity for an attractive level of income and for significant growth over the medium to long term. We are pleased to agree this investment immediately following our successful fund-raising.”

Link to RNS

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SDCL welcomes the announcement that its Senior Advisor, Michael Liebreich, has been appointed as an Official Adviser to the Board of Trade by the UK Government.

The Board of Trade and its advisers comprise senior figures from business, academia and government. Originally constituted in the early 17^th Century but recently revived, its President is Liz Truss, Secretary of State for International Trade. Its members and advisers are expected to use their influence to help Britain make a stronger case for free trade on the international stage.

Michael became Senior Advisor to SDCL in September 2018 and is a global authority on clean energy and transportation, smart infrastructure, technology, climate finance and sustainable development. He is Chairman and CEO of Liebreich Associates and serves on a number of advisory boards.

SDCL’s CEO, Jonathan Maxwell, said: “We’re delighted that Michael’s considerable knowledge and experience will be utilised by the government in the negotiation of future trade deals. He is a highly valued advisor to SDCL and we have no doubt the Board of Trade will benefit greatly from his deep understanding of the challenges and opportunities that the UK the global economy face at this critical point in history.”