(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Thursday said it intends to raise GBP60 million through the issue of 57.7 million shares at 104 pence each as it posted an improvement in its accounts for financial 2020.
The placing price represents a 2% discount to the Wednesday closing price of 106p. Shares in the investment company were trading 0.2% lower at 105.77 pence each on Thursday afternoon in London, giving it a market capitalisation of GBP338.9 million.
The placing is being conducted by way of a bookbuilld with Jefferies International Ltd acting as sole bookrunner.
SDCL said the new cash will be used to fund a of investment opportunities worth over GBP400 million including three projects with a value of over GBP100 million which are at an advanced stage of negotiation. The projects include a rooftop solar project for an international retailer, a district energy project in North America and an electrical vehicle charging infrastructure network in the UK.
It added that the cash will also allow it to repay it revolving credit facility, if appropriate.
"Notwithstanding the current market dislocation, energy efficiency remains of growing importance globally and SEEIT's stable cash flow profile represents a defensive investment proposition. This capital raise builds on our strong performance since IPO and allows the Company to expand its portfolio by deploying proceeds into a variety of energy efficiency projects," said SDCL Chair Tony Roper.
Turning to its annual results, the London-based company said its net asset value as at March 31 increased to 101.0p from 98.4p the year prior. The portfolio was valued at GBP319.8 million, up from GBP60.9 million at the same time in 2019.
A 5.0p dividend was declared, as the company set a target to increase dividend to 5.5p for financial 2021.
During the year, SDCL made investments in Supermarket Solar UK, Spark US Energy Efficiency, Oliva Spanish Cogeneration, and Primary Energy which is a portfolio of recycled energy and cogeneration projects in the US ste of Indiana.
Looking ahead, Roper said: "The details of how we emerge from the crisis associated with the Covid-19 pandemic remain unclear, but in many of the company's target markets there is likely to be a focus on the most effective way to re-start and re-invigorate stalled economies. In June 2020 the European Commission announced a series of stimulus and recovery measures that specifically prioritise 'greener' investments, so as to simultaneously address national climate related targets, building amongst other things on the widening public appreciation of the benefits of reduced pollution levels during the economic shutdown and general awareness of climate change. Efficient, cheaper, cleaner and more reliable energy solutions should be more attractive to government, businesses and investors than ever before.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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Sdcl Energy Ef. (SEIT)