Liberum: SDCL Energy Efficiency Income

General/ 02 March 2021

Acquisition activity

SEIT: Mkt Cap £748m | Prem/(disc) 9.8% | Div yield 5.0%

SDCL Energy Efficiency Income has completed the acquisition of a series of portfolios of on-site solar and energy storage projects in the US, together with a 50% interest in Onyx Renewable Partners (first announced in December). SEIT will initially pay $120m, with an incremental $30m expected to be deployed in the coming months as construction progresses on the solar projects. The projects include a 100% interest in four solar and storage portfolios totalling c.175 MW of operational, in-construction and development stage assets. The 50% interest in Onyx provides access to its longer-term pipeline, which is projected to exceed 500MW over the next 5 years. The acquisition was one of the projects identified prior to the recent capital raise and has been financed through cash reserves. Existing project debt finance facilities remain in place post-acquisition.