Liberum: SDCL Energy Efficiency Income – Proposed £100m Capital Raise

General/ 04 February 2021

Mkt Cap £566m | Prem/(disc) 6.8% | Div yield 5.1%

Event

SDCL Energy Efficiency Income Trust is seeking to raise c.£100m through an issue of 94.3m new ordinary shares at a price of 106.0p per share. The placing price represents a 3.9% premium to the September 2020 NAV and a 1.4% discount yesterday’s closing price.

Net proceeds from the raise will be used to make further investments into projects or frameworks within SEIT’s existing portfolio, as well as specific asset management initiatives, with a value of approximately £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. SEIT expects to repay its acquisition debt facility (£30m) and its RCF (£35m drawn) from the net proceeds and then re-draw on the facilities to fund the new investments.