(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Monday said it has invested USD21 million into a portfolio of LED lighting projects across the US.
The London-based energy efficiency project investor will receive a 50% interest in Future Energy Solutions Lighting Holdings LLLP, the company that developed the projects, which are in operation across 42 states.
SDCL Energy Efficiency's investment includes a shareholder loan with priority entitlement to cash flows from the business ahead of equity distribution until the loan principal has been repaid.
Future Energy Solutions is a green technology company that provides energy efficient lighting solutions to enterprises across the US, in exchange for fixed monthly payments. The company's operational portfolio consists of over 1,000 customers, mostly small and medium-sized enterprises, from a wide range of sectors.
SDCL Energy Efficiency said its investment contributes to the company's existing investments in LED lighting and added diversification to its portfolio.
The investment is funded from financial existing resources and supports SDCL Energy Efficiency's guidance on total returns target "as well as its stated progressive dividend policy".
"Switching to LED lighting is one of the simplest and most readily available changes that can be made to reduce CO2 emissions. Lighting accounts for nearly 5% of global CO2 emissions. LED lighting can achieve energy savings of up to 90% in comparison to traditional lighting, benefiting the environment and reducing costs for business. We expect the 'Lighting as a Service' market to grow considerably in the coming years, in both the US and Europe, and this presents a very attractive investment opportunity for SDCL Energy Efficiency that meets its yield and returns targets,'' SDCL Energy Efficiency Chief Executive Jonathan Maxwell commented.
Future Energy Solutions Chief Executive Peter Hawksworth added: "Partnering with SDCL Energy Efficiency in the US and Europe, allows Future Energy Solutions to grow across all our areas of expertise and use the lighting as a service model to influence and achieve positive change in business sectors, where our customers can make significant and instant savings alongside a reduction in carbon footprint and simplify their operational performance."
SDCL shares were down 0.1% at 116.44 pence each on Thursday afternoon in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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