Sdcl Ef. Inc Tr Regulatory News (SEIT)

6 November 2019

SDCL Energy Efficiency Income Trust plc("SEEIT" or the "Company")Acquisition Completion

SDCL Energy Efficiency Income Trust plc, the first UK-listed investment company of its kind to invest exclusively in the energy efficiency sector, is pleased to announce that it has now completed the acquisition, previously announced on 20 September, of a portfolio of nine cogeneration projects in Spain from Sacyr S.A. (''Sacyr''), a leading Spanish construction group.

The portfolio consists of nine operational projects providing in aggregate 125 MW of clean and efficient energy generation. The portfolio includes five combined heat and power (CHP) plants, two olive processing plants and two biomass plants. Sacyr will continue to operate and maintain the portfolio. The portfolio generates clean and renewable energy by operating at high levels of combined electrical and thermal efficiency, using the waste heat from the electricity generation for the industrial processes and using the biomass from the industrial processes to generate renewable electricity. The substantial majority of the portfolio's revenues are from investment grade counterparties.

The acquisition, which is SEEIT's largest since its IPO in December 2018, has been funded through a combination of its revolving credit and acquisition finance facilities and existing cash reserves.

The acquisition has been financed using approximately €79 million of existing cash and approximately €71 million of borrowings under SEEIT's credit facilities. These have been drawn down to repay in full the project debt finance facility associated with the portfolio. The repayment of the project finance debt accounts for the increased cash consideration relative to the €64 million announced in September.

As announced on 18 October 2019, SEEIT raised an additional £100m via a placing of new ordinary shares as part of its existing Share Issuance Programme. Part of this has been deployed in this acquisition and the Investment Manager is actively progressing a significant pipeline of new investment opportunities, a number of which are at an advanced stage.

Commenting on the acquisition, Jonathan Maxwell, CEO and Founder of Sustainable Development Capital LLP, said:

"We are delighted to have completed this acquisition. The quality of the assets and our ongoing partnership with Sacyr make this a very attractive opportunity for the Company.

This portfolio achieves high levels of combined electrical and thermal efficiency, as well as producing clean and renewable energy. It represents an investment in a highly cash generative and proven operational portfolio and further diversifies SEEIT, in terms of geography, technology and application. We are confident that this portfolio will make a significant contribution to SEEIT's total returns.''

For Further Information

About SEEIT

SDCL Energy Efficiency Income Trust plc (the "Company") is the first listed company of its kind to invest exclusively in the energy efficiency sector. Examples of the projects in the portfolio include combined cooling/heating and power plants, as well as energy efficiency projects in the UK and the US. Since IPO, the Company has invested in a diversified portfolio of energy efficiency assets, including the seed portfolio, a portfolio of rooftop solar PV projects for Tesco (UK), a portfolio of cogeneration assets (USA), a portfolio of energy efficiency loans (USA) and this portfolio of cogeneration assets (Spain).

The Company aims to deliver shareholders value through its investment in a diversified portfolio of energy efficiency projects which are driven by the opportunity to deliver lower cost, cleaner and more reliable energy solutions to end users of energy.

The Company is targeting an attractive total return for shareholders of 7-8 per cent. per annum (net of fees and expenses and by reference to the initial issue price of £1.00 per Ordinary Share), with a stable dividend income, capital preservation and the opportunity for capital growth.

Further information can be found on the Company's website at www.sdcleeit.com.

Investment Manager

SEEIT's investment manager is Sustainable Development Capital LLP ("SDCL"), an investment firm established in 2007, with a proven track record of investment in energy efficiency and decentralised generation projects in the UK, Continental Europe, North America and Asia.

SDCL is headquartered in London and the group also operates worldwide from offices in New York, Dublin and Singapore. SDCL is authorised and regulated in the UK by the Financial Conduct Authority.