Last checked at 21 Dec 2020 07:00
21 December 2020
Downing Renewables & Infrastructure Trust plc
("DORE" or "the Company")
First Investment since IPO
Acquisition: Portfolio of Eight Swedish Operational Hydropower Plants
Downing Renewables & Infrastructure Trust plc is pleased to announce that it has exchanged contracts to acquire its first investment, a portfolio of eight operational hydropower plants (the "Portfolio") in central and southern Sweden. The Portfolio is being acquired from Fortum Sweden AB ("Fortum") for a purchase price of approximately €65 million on a debt and cash free basis. The transaction is expected to complete in February 2021.
Hydropower is a key energy source in the drive towards 100% renewable energy in Sweden by 2040 and is a key sector focus for DORE. The sector provides predictable long-term cash flows from assets that have much longer lives than other renewable energy technologies such as wind and solar.
The Portfolio comprises eight hydropower plants across three different rivers in Sweden, with annual average production of over 100 GWh. The Portfolio has an operating track record spanning more than five decades.
DORE, which raised £122.5 million in its IPO on the London Stock Exchange earlier this month, is targeting investment in a diversified portfolio of renewable energy generating assets and other infrastructure assets in the UK, Ireland and Northern Europe.
The initial investment in the Portfolio amounts to approximately 48% of the IPO proceeds. DORE anticipates that the Portfolio will take out leverage during the course of 2021 which will reduce the amount invested in the Portfolio. Capital released would then be reinvested in the wider pipeline of opportunities available and further diversify the portfolio.
This project forms part of the further renewable energy and infrastructure investments identified by Downing LLP and disclosed in DORE's prospectus dated 12 November 2020.
Hugh W M Little, Chair of Downing Renewables & Infrastructure Trust plc said:
"This is an exciting first acquisition for DORE with a demonstrable track record in one of our key geographical locations. Diversification is the key descriptor for DORE and this portfolio of hydropower plants epitomises what we set out to invest in to be able to offer our shareholders stable and sustainable returns while supporting the global efforts to combat climate change."
Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP, further commented:
"We are delighted to announce our first acquisition on behalf of DORE. This is an exciting portfolio with its eight operational hydropower plants that have been generating for the last 50 years. With our internal asset management team engaged to protect and enhance value, we are confident that this inaugural investment will contribute strongly to DORE's returns for a long time. This is an important step in delivering on our mandate while working towards a cleaner, greener future."
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU no. 596/2014).
Link Company Matters Limited
Company Secretary
21 December 2020
ENDS
Contact details:
Downing LLP - Investment Manager to the Company
Tom Williams
| +44 (0)20 3954 9908 |
N+1 Singer - Corporate broker
Robert Peel, Alan Ray, Carlo Spingardi (Investment Banking) Sam Greatrex, Alan Geeves, James Waterlow, Paul Glover (Sales)
| +44 (0)20 7496 3000
|
TB Cardew - Public relations advisor to the Company
Ed Orlebar Tania Wild
| +44 (0)20 7930 0777
+44 (0)7738 724 630 / +44 (0)7425 536 903 DORE@tbcardew.com |
About Downing Renewables & Infrastructure Trust plc (DORE)
DORE is a closed-end investment trust that invests exclusively in a portfolio of diversified Renewable and Infrastructure assets located in the UK, Ireland and Northern Europe. DORE's strategy, which focuses on diversification, is designed to increase the stability of revenues and reduce seasonal variability and enhance returns by making some investments into assets that are in construction or are construction-ready. For further details please visit www.doretrust.com
LEI: 2138004JHBJ7RHDYDR62
About Downing LLP
Downing LLP is a London-based investment management firm. It has over 35,000 investors and has raised over £1.7 billion into businesses across a range of sectors, from renewable energy, care homes, health clubs, and children's nurseries, to technology and sports nutrition. Downing has a demonstrable track record in renewables, having made 116 investments into solar parks, wind farms and hydroelectric plants since 2010. For further details please visit www.downing.co.uk
About Fortum
Fortum is a European energy company with activities in more than 40 countries. We provide our customers with electricity, gas, heating and cooling as well as smart solutions to improve resource efficiency. We want to engage our customers and society to join the change for a cleaner world. Together with our subsidiary Uniper, we are the third largest producer of CO2-free electricity in Europe. With approximately 19,000 professionals and a combined balance sheet of approximately EUR 69 billion, we have the scale, competence and resources to grow and to drive the energy transition forward. Fortum's share is listed on Nasdaq Helsinki and Uniper's share on the Frankfurt Stock Exchange. www.fortum.com