IPE Real Assets: SDCL buys Swedish utility Värtan Gas for £100mGeneral/ 19 October 2020
BY IPE STAFF 19 OCTOBER 2020
SDCL Energy Efficiency Income Trust is buying Swedish regulated gas distribution network company Värtan Gas Stockholm for £100m (€109m).
The UK-listed investment firm said the acquisition will be funded from existing cash reserves and debt facilities, which include the capital raised in the recent equity fundraising and a £30m short term acquisition facility that has been added to SDCL’s current £40m revolving credit facility.
Värtan Gas owns and operates Stockholm’s regulated gas grid, the majority of which is sourced from locally produced biogas. The group supplies and distributes to over 58,000 residential, commercial, industrial, transportation and real estate customers in Stockholm.
Jonathan Maxwell, CEO and founder of SDCL’s investment manager Sustainable Development Capital, said: “SDCL is making an investment in an important infrastructure asset for the City of Stockholm. It provides an attractive opportunity for SDCL 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.”