(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Tuesday proposed a change to its investment policy in a bid to capitalise on its pipeline of potential acquisitions in North America and continental Europe.
SDCL's current policy states 25% of its investments must be UK-based. The energy efficiency sector-focused investment trust will propose removing the minimum exposure floor, which would allow it to "benefit from additional flexibility when sourcing and investing".
SDCL added: "The board and the investment manager expect that the company will continue to retain significant exposure to UK-based investment assets over the medium- to long-term.
"However, taking account of the quality of the acquisition pipeline in North America and continental Europe in particular, the board is minded to seek shareholder approval to remove the 25% minimum exposure limit to UK-based investment assets which was adopted at the time of the company's IPO."
On Wednesday, SDCL said it completed a USD110 million investment in a portfolio of assets in the US.
"Notwithstanding any change to the exposure limits, the company remains focussed on its sterling based dividend targets and net asset value and is therefore committed to having appropriate hedging arrangements in place for its portfolio," SDCL added on Tuesday.
Shares in the company, which debuted on the London Main Market in 2018, were 0.5% lower at 110.48 pence each in London on Tuesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Sdcl Energy Ef. (SEIT)