Pure play energy efficiency sector investor SDCL Energy Efficiency Income Trust plc (SEEIT) announced the successful completion of an equity placement, raising £160 million through the issuance of 150.9 million New Ordinary Shares.
The deal provides another highlight of the strong support for investments in the renewables and energy transition spaces. Driven by strong demand, the deal was oversubscribed, and SEEIT significantly exceeded its initial target to raise £100.
SEEIT currently has a portfolio of approximately £600 million, including 34 different projects, diversified across several technologies, sectors and geographies. Proceeds from the offering will go towards funding organic investment opportunities, or follow-on investments into projects or frameworks within the SEEIT’s existing portfolio as well as specific asset management initiatives at an individual project level. Potential opportunities include investments into commercial and industrial solar projects and energy efficiency projects across the United States, as well as investments into electric vehicle charging infrastructure projects across the UK.
Tony Roper, Chairman of SDCL Energy Efficiency Income Trust plc, said:
“We are grateful for the strong support we have once again received from both new and existing investors in this over-subscribed placing. The Company has a strong pipeline of both organic investments and new acquisition opportunities, which in total exceeds £200 million. In light of the strength of investor demand and reflecting our confidence in both the depth and near-term availability of the pipeline, we have increased the size of the placing. We also intend to repay the existing debt facilities of £65 million. Debt facilities can be drawn in the future to make new investments.
“We continue to focus on ensuring that we create value and deliver stable returns for our shareholders through the expansion, improvement and diversification of our portfolio. With global commitments to achieving net zero from businesses and governments and COP26 taking place at the end of the year, this is a very exciting time to be investing in energy efficiency projects, which play an essential role in reducing carbon emissions.”
Jefferies acted as sole global coordinator, sole bookrunner and sole sponsor to SDCL Energy Efficiency Income Trust (“SEEIT”) on its £160 million oversubscribed equity placing.