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28 Jan 2020 07:00
28 January 2020
JLEN ENVIRONMENTAL ASSETS GROUP LIMITED
("JLEN" or the "Company")
Partnership Commitment
JLEN, the listed environmental infrastructure fund, is pleased to announce a commitment of €25m to Foresight Energy Infrastructure Partners SCSp ("FEIP"), a Luxembourg limited partnership investment vehicle.
FEIP aims to generate returns from investing in a portfolio of diversified infrastructure assets that contribute to the decarbonization of electricity networks. The majority of investments will be in construction-stage European renewable energy generation infrastructure such as wind farms and solar parks, and FEIP also has an allocation to renewable enabling infrastructure such as energy storage, and transmission and distribution assets that complement intermittent generation assets. FEIP has identified an initial portfolio that includes European construction-stage wind and solar assets and operational battery storage assets.
The investment in FEIP will allow JLEN to further diversify its geographic and technology exposure, while also gaining an allocation to construction stage assets which is expected to enhance returns. Given construction stage assets can only represent a small part of the Company's portfolio, the FEIP investment allows a greater level of diversification than would be possible with direct investments providing for a more attractive risk-adjusted return profile. JLEN's commitment to FEIP will also open the possibility of future co-investment opportunities on a selective basis. JLEN will be excused from any FEIP investment that is not consistent with JLEN's investment policy.
Any management fees payable by FEIP in connection with JLEN's commitment will be rebated to JLEN. A carried interest is due to the manager, subject to a hurdle rate.
Richard Morse, Chairman of JLEN, said:
"This commitment to FEIP enables JLEN to make further use of its broad environmental infrastructure mandate, gaining exposure to additional European renewables markets and to higher returning construction-stage assets. Future opportunities for co-investment may also be of interest as JLEN continues to offer investors one of the most diversified propositions in the Listed Renewables sector".
Foresight Group Chris Tanner Chris Holmes
| +44(0)20 3667 8100 |
Winterflood Investment Trusts Neil Langford Chris Maills
| +44(0)20 3100 0000 |
Newgate Communications Elisabeth Cowell Ian Silvera
| +44(0)20 3757 6880 |
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About JLEN
JLEN's investment policy is to invest in environmental infrastructure projects that have the benefit of long-term, predictable, wholly or partially inflation-linked cash flows supported by long-term contracts or stable regulatory frameworks.
Environmental Infrastructure is defined by the Company as infrastructure projects that utilise natural or waste resources or support more environmentally-friendly approaches to economic activity. This could involve the generation of renewable energy (including solar, wind, hydropower and biomass technologies), the supply and treatment of water, the treatment and processing of waste, and projects that promote energy efficiency.
JLEN's aim is to provide investors with an annual dividend that is sustainable and increases in line with inflation. The target dividend for the year to 31 March 2020 is 6.66 pence per share. The dividend is payable quarterly.
Further details of the Company can be found on its website www.jlen.com
LEI: 213800JWJN54TFBMBI68
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