Thomaslloyd Regulatory News (TLEP)

LEI: 254900V23329JCBR9G82

21 JUNE 2022

ThomasLloyd Energy Impact Trust PLC

("TLEI" or the "Company")

Additional SolarArise Investment

Seven operational and construction-ready assets in India, which form part of the portfolio's seed assets, to be wholly owned by TLEI

The Board of ThomasLloyd Energy Impact Trust plc, the renewable energy investment trust providing direct access to sustainable energy infrastructure in fast growing and emerging economies in Asia, is pleased to announce the contractual commitment to acquire the remaining 57% interest in SolarArise India Projects Private Limited ("SolarArise"). The consideration of US$38.5 million will be funded by existing cash resources.

Completion of the initial 43% interest in SolarArise, part of the seed assets outlined at IPO, is expected in the coming weeks and the acquisition of the remaining interest is expected to complete in the fourth quarter of 2022 following regulatory approval and other completion procedures.

SolarArise is a Delhi based renewable energy platform which holds interests in seven solar power projects in India totalling 434 MW, of which 234 MW is operational and 200 MW is construction-ready. 100% of SolarArise's operating revenues are generated under fixed price, long-term power purchase agreements. 

Following completion of the 43% interest and this acquisition, the Company will own 100% of SolarArise and have deployed, or committed to deploy, 66% of the net IPO proceeds. Following completion, the Company's portfolio will include interests in 10 solar plants, in two countries.

Nandita Sahgal-Tully, Managing Director, Infrastructure Asset Management, ThomasLloyd, said:

"We are delighted to have reached an agreement to acquire the remaining 57% interest in SolarArise, increasing our holding to 100%. Having now committed and/or deployed IPO proceeds into 10 solar plants in India and the Philippines, 66% of our IPO proceeds have been effectively invested, and with our near term pipeline, this puts us firmly on track with our deployment targets as set out at IPO. Our strategy of investing in sustainable energy infrastructure in fast-growing economies to deliver financial returns alongside environmental and social benefits represents a large opportunity, in areas where the investment case is compelling and the largest impact can be seen with regards to achieving net zero."

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About ThomasLloyd Energy Impact Trust Plc

ThomasLloyd Energy Impact Trust plc (TLEI) listed on the premium segment of the main market of the London Stock Exchange in December 2021 and was awarded the Green Economy Mark upon admission.

In 2021, ThomasLloyd Group participated in the Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) competition, which engaged financial institutions in a search for the best sustainable infrastructure proposal that can list either on the London Stock Exchange or local exchanges. ThomasLloyd Group was the first fund manager to complete this process successfully and received US$32.3 million in investment from the UK government into TLEI.

The Company has a triple return investment objective which consists of:

· providing shareholders with attractive dividend growth and prospects for long-term capital appreciation (the financial return);

· protecting natural resources and the environment (the environmental return); and

· delivering economic and social progress, helping build resilient communities and supporting purposeful activity (the social return).

The Company seeks to achieve its investment objective by investing directly in a diversified portfolio of sustainable energy infrastructure assets in the fast-growing and emerging economies in Asia. The assets will be unlisted sustainable energy infrastructure assets in the areas of renewable energy power generation, transmission infrastructure, energy storage and sustainable fuel production, including utilising different technologies to reduce revenue variability.

The Company aims to generate additional value for its investors through focusing its investments on construction-ready or in-construction projects. The Company only invests in such pre-operational assets where: (i) an offtake agreement has been entered into; (ii) the land on which the project is situated is identified or contractually secured where appropriate; and (iii) all relevant permits have been granted.

Offtake agreements will typically benefit from long-term fixed-price power purchase agreements, capacity contracts or other similar revenue contracts with creditworthy (primarily investment grade) private and public sector buyers.

As is the case for all ThomasLloyd funds, the Company is expected to qualify as an Article 9 fund under the EU Sustainable Finance Disclosure Regulation ("SFDR"). Further information on the Company can be found on its website at http://www.tlenergyimpact.com

About the Investment Manager

The Company's Investment Manager is a wholly-owned subsidiary of ThomasLloyd Group and is part of the Asset Management division of the ThomasLloyd Group. Established in 2011, the Investment Manager is a leading impact investor and provider of climate financing. The Investment Manager aims to apply a robust, socially and environmentally responsible investment approach that is geared towards reducing carbon emissions and improving economic prospects, while reducing investment risk through diversification across countries, sectors and technologies

Over the last decade, the investment manager has deployed over US$1 billion across 16 projects in renewable energy power generation, transmission and sustainable fuel production with a total capacity in excess of 700 MW.

Since 2013, the firm has been measuring and reporting on the impact of its investments, creating an empirical database showing the positive impact of their investments in sustainable energy infrastructure in high growth and emerging markets in Asia. The investment manager estimates, using industry standard methodologies, that these projects have created more than 14,000 permanent new jobs, provide 1.8 million people with clean, stable and affordable energy and save annually more than 850,000 tonnes of CO2.