Citywire Investment Trust Insider: Share Issues – Only Target Health Targets DIY Investors

General/ 12 February 2021

London-listed alternative income funds are continuing to cash in on investor demand for their dividends with three announcing fundraising plans this morning and SDCL Energy Efficiency Income (SEIT) upping this month’s share placing to £160m.

SDCL ups offer

SDCL was one of the biggest fundraisers last year, issuing £215m of shares. It had sought to attract a further £100m a week ago but the strength of investor interest has enabled Jefferies, its broker, to raise 60% more from institutional investors to repay debts and make follow-on investments.

Even so, it said applications had to be scaled back. It will issue 150.9m shares at 106p per share which is a 3.9% premium to the last net asset value (NAV) on 30 September NAV of 102p, to ensure existing shareholders are not diluted, and 1.4% below the share price before the announcement on 4 February to tempt new investors. Trading in the new shares will start next Tuesday.

Shares in the £560m investment trust, which launched just over two years ago, added 1.3p to 107.8p today, offering a 5% yield, as it said it had identified a £100m pipeline of potential investments to broaden its portfolio. These include projects in energy efficiency, smart metering, combined heat and power, renewable natural gas, hydrogen and solar energy in the UK, Europe, North America and in Asia.

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