What is energy efficiency?
Learn about how we approach, and
solve the issue of energy inefficiency
Cheaper, cleaner & more reliable energy solutions
Energy efficiency involves the delivery of cheaper, cleaner and more reliable energy solutions at the point of use, reducing or eliminating reliance on the grid or subsidies. This can be achieved for commercial, industrial and public buildings through on-site energy generation, such as combined heat and power units and roof-top solar installations, or through energy demand reduction measures, such as efficient lighting, heating and cooling solutions and also through effective use of energy storage solutions. A substantial and rapidly growing marketplace has emerged for energy efficiency solutions, providing SEEIT with an attractive growth sector in which to invest.
Owns and manages a diverse portfolio of energy efficiency and distributed energy generation assets
Invests in proven operational projects that deliver energy for commercial, industrial and public sector buildings
Finances or refinances energy efficient assets and equipment
Acquires portfolios, platforms or individual assets
Invests for the long-term, with a focus on optimising and improving assets
Finances the roll-out of energy efficiency solutions at scale
Our investment policy
- SEEIT’s investment objective is to generate an attractive total return for investors comprising stable dividend income and capital preservation, with the opportunity for capital growth.
- SEEIT achieves this through investing principally in a diversified portfolio of energy efficiency projects with high-quality counterparties.
- The contracts governing these energy efficiency projects entitles SEEIT to receive stable, predictable cash flows once the energy efficiency projects are operational.
- SEEIT invests and manages its energy efficiency projects with the objective of assembling a high quality, diversified portfolio with respect to technology, manufacturer and public and private sector Counterparties.
- Whilst SEEIT invests predominantly in operational energy efficiency projects, under certain circumstances SEEIT may invest in projects which are at the development or construction phase or, to a limited extent, in developers, operators or managers of energy efficient projects.
- SEEIT initially focussed its attention on investing in the UK. However, over time, SEEIT has made, and may continue to make, investments in continental Europe, North America and the Asia Pacific region.
- In pursuing its investment policy, the Company will seek to target sustainable investments, for example, by investing in projects that contribute to greenhouse gas (“GHG”) emission reductions.
- No energy efficiency project investment by SEEIT will represent more than 20 per cent. of gross asset value, calculated at the time of investment.
- The aggregate maximum exposure to any Counterparty will not exceed 20 per cent. of gross asset value, calculated at the time of investment;
- The aggregate maximum exposure to energy efficiency projects in either a development phase or construction phase will not exceed 35 per cent. of gross asset value, calculated at the time of investment, provided that, of such aggregate amount, the aggregate maximum exposure to energy efficiency projects in a development phase will not exceed 10 per cent. of gross asset value, calculated at the time of investment;
- The aggregate value of the Company’s investments (calculated at the time of investment) in developers, operators or managers of Energy Efficiency Projects that are not made at the same time as an investment by the Company in an associated Energy Efficiency Project will not exceed 3 per cent. of Gross Asset Value (with such 3 per cent. limit being included in the 10 per cent. limit on exposure to Energy Efficiency Projects in a development phase); and
- SEEIT will not invest in other UK listed closed-ended investment companies.
- SEEIT will maintain a conservative level of aggregate gearing in the interests of capital efficiency, in order to seek to enhance income returns, long term capital growth and capital flexibility. SEEIT’s target medium term gearing will be up to 35 per cent. of net asset value, calculated at the time of borrowing (the ‘‘Structural Gearing’’).
- SEEIT may also enter into borrowing facilities on a short term basis to finance acquisitions (‘‘Acquisition Finance’’), provided that the aggregate consolidated borrowing of SEEIT and the project special purpose vehicles (“SPV’s”), including any Structural Gearing, shall not exceed 65 per cent. of net asset value, calculated at the time of borrowing. SEEIT would intend to repay any Acquisition Finance with the proceeds of a Share issue in the short to medium term.
- Structural Gearing and Acquisition Finance will be employed either at the level of SEEIT plc, at the level of the relevant project SPV or at the level of any intermediate wholly owned subsidiary of SEEIT, and any limits shall apply on a consolidated basis across SEEIT, the project SPVs and such intermediary holding company. It is expected that Structural Gearing and Acquisition Finance will primarily comprise bank borrowings, though small overdraft facilities may be utilised for flexibility in corporate actions.
Currency and hedging policy/ Use of derivatives
- SEEIT may use derivatives for efficient portfolio management but not for investment purposes. In particular, SEEIT may engage in full or partial interest rate hedging or otherwise seek to mitigate the risk of interest rate increases and full or partial foreign exchange hedging to mitigate the risk of currency inflation.
- SEEIT will only enter into hedging contracts and other derivative contracts when they are available in a timely manner and on terms acceptable to it. SEEIT reserves the right to terminate any hedging arrangement in its absolute discretion.
- Whilst it is the intention of SEEIT to be fully or near fully invested in normal market conditions, SEEIT may hold cash on deposit and may invest in cash equivalent investments, which may include short term investments in money market type funds and tradeable debt securities (‘‘Cash and Cash Equivalents’’).
- There is no restriction on the amount of Cash and Cash Equivalents that SEEIT may hold and there may be times when it is appropriate for SEEIT to have a significant Cash and Cash Equivalent position instead of being fully or near fully invested.
Changes to investment policy
- No material change will be made to SEEIT’s investment policy without the prior approval by ordinary resolution of shareholders.