Liberum: SDCL Energy Efficiency Income – Enlarged £160m Capital Raise

General/ 12 February 2021

Mkt Cap £560m | Prem/(disc) 5.8% | Div yield 5.2%

Event

SDCL Energy Efficiency Income has raised gross proceeds of £160m via the issue of 151m new shares at a price of 106p per share. The size of the placing was increased from a £100m target. The placing price represented a 3.9% premium to the September 2020 NAV.

Net proceeds from the raise will be used to repay existing debt facilities, which total £65m. The company will use the remaining proceeds to make further investments into projects within SEIT’s existing portfolio, as well as specific asset management initiatives, with a value of c.£100m. These include:

  • investments into commercial and industrial solar projects across the United States in conjunction with Onyx
  • investments into energy efficiency projects across the United States in conjunction with Sparkfund
  • investments into electric vehicle charging infrastructure projects across the UK in conjunction with EV Networks

The manager is also progressing on a number of new opportunities, with a combined value in excess of £100m.