1 Jun 2021 07:00
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1 June 2021
Triple Point Energy Efficiency Infrastructure Company plc
("TEEC" or the "Company" or together with its subsidiaries, the "Group")
Investment in combined heat and power (CHP+) asset
The Board of Directors of Triple Point Energy Efficiency Infrastructure Company plc (ticker: TEEC) is pleased to announce that the Group has completed an investment in Spark Steam Limited ("Spark Steam"), a company which owns and operates a combined heat and power (CHP+) asset and which was part of the pipeline identified at IPO.
Under the terms of the investment, the Group has provided £8m of senior debt finance secured against Spark Steam, the underlying assets, equipment, and contracts. The interest rate is 7.375% per annum, and carries a term of 10.5 years, amortising over the term.
Spark Steam owns an operational, established energy centre located in Teesside, supplying heat, electricity, and also carbon dioxide to the UK's largest tomato grower, APS Salads ("APS"), pursuant to an Energy Services Agreement, with a remaining term of approximately 15.5 years. Spark Steam also has the potential to sell electricity to other energy uses under private wire connections.
APS is responsible for approximately one third of the country's tomato production and has over 65 years of operational experience. APS owns and operates over six million sq. ft. of glasshouses and distributes to all major UK food retailers including: Aldi, Iceland, Lidl, M&S, Ocado, Morrisons, Sainsbury's, Tesco and Waitrose.
An additional benefit of the CHP+ facility is that the main waste product from combustion, carbon dioxide, is used to enhance crop yields on site rather than being vented into the atmosphere. The energy centre comprises two state of the art Jenbacher gas engines and heat/carbon dioxide recovery and distribution equipment.
The transaction is aligned with the Company's targeted risk/return profile and objective of delivering secure investments that generate a total return for investors comprising sustainable income and capital growth. It also supports the transition to a low carbon economy in accordance with the UK government's overall environmental targets.
The transaction is refinancing debt previously provided in part by investees of other funds under the management of the Triple Point Group and has been approved by the Board in line with TEEC's conflict of interest procedures.
John Roberts, the Company's Chairman, said:
"I am delighted that TEEC has made this investment into an asset which delivers highly energy efficient services to an important UK domestic producer of food items. The investment will continue to help APS to grow produce with low carbon intensity and with optimised energy efficiency. I am confident that Triple Point, the Company's Investment Manager, will continue to progress the execution of our pipeline of energy efficiency investment opportunities."
For further information, please contact:
Triple Point Investment Management LLP
Jonathan Parr Jonathan Hick
|
(via FTI below) |
Akur Limited (Financial Adviser)
Tom Frost Anthony Richardson Siobhan Sergeant | 020 7493 3631 |
RBC Capital Markets (Joint Broker)
Matthew Coakes Jill Li Kathryn Deegan |
020 7653 4000 |
Winterflood Securities (Joint broker)
Neil Langford Hande Derinkok |
020 3100 0000 |
FTI Consulting
Ed Berry Mitch Barltrop |
07703 330 199 07807 296 032 |
LEI: 213800UDP142E67X9X28
Further information on the Company can be found on its website: www.tpenergyefficiency.com.
NOTES:
The Company is a recently incorporated investment trust which invests exclusively in a diversified portfolio of Energy Efficiency assets in the UK, which have a positive environmental impact. The Company's investments will focus on the core sectors of: low carbon heat distribution; social housing retrofit and industrial energy efficiency; and distributed generation.
The Investment Manager is Triple Point Investment Management LLP ("Triple Point") which is authorised and regulated by the Financial Conduct Authority. Triple Point manages private, institutional and public capital, and has a proven track record of investment in Energy Efficiency and decentralised energy generation projects. In 2018, Triple Point was appointed as the Delivery Partner to BEIS, a department of the UK government, to deliver the £320 million Heat Networks Investment Project ("HNIP").
The Company was admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange on 19 October 2020 and was awarded the London Stock Exchange's Green Economy Mark.