(Alliance News) - SQN Asset Finance Income Fund Ltd on Thursday said it has exited one further anaerobic digestion plant investment in February, at a premium to the initially targeted yield.
An anaerobic digestion plant converts food and crop waste into biogas, which in turn can be used to generate heat and electricity.
SQN said it received an annualised investment yield of around 14% against the originally booked figure of 11%.
This disposal is consistent with the investment managers' plan to reduce its exposure to the sector, the Surrey-based company said.
The sale of this plant - which marks the fifth - takes the number of the remaining plants to ten. Of the ten remaining plant investments, six are currently under a review with the aim of determining their value.
"These remaining assets will follow the same eventual pattern of reaching a steady-state of energy production and income and then be subsequently refinanced or sold as the method of exiting the transaction".
In January, SQN said it was invested in a total of 11 anaerobic digestion plants. It said six of them were in the ramp-up phase, with three having not yet reached targeted operational capacity. In February, the company said it hired KPMG to provide an independent assessment of the valuation of the six assets which SQN said had a valuation of GBP127.7 million as at the end of November.
Shares in SQN were trading 4.8% lower at 48.00 pence each on Thursday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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