New ThomasLloyd trust eyes USD-340m IPO for Asia green energy investments

ThomasLloyd Energy Impact Trust PLC (TLEI), a newly established closed-ended investment company, plans to raise up to USD 340 million (EUR 294m) via an initial public offering (IPO) in London to invest in unlisted sustainable energy infrastructure assets in Asia, it said today.

The company intends to acquire seed assets worth about USD 59 million from affiliates of the investment manager, ThomasLloyd Group. These consist of interests in nine operational and one in-construction utility-scale solar projects totalling 514 MW. Seven of the projects are in India and three in the Philippines. An investment pipeline of more than 1,500 MW has also been identified in India, the Philippines, as well as in Indonesia, Vietnam, Bangladesh and Sri Lanka.

A ThomasLloyd affiliate will receive USD 35 million in ordinary shares as part of the consideration for the seed assets.

The UK government’s Foreign, Commonwealth & Development Office (FCDO) has also made an in-principle decision to invest up to GBP 25 million (USD 39m/EUR 29m) in TLEI.

The offering is billed as the first ever on the London Stock Exchange that provides direct access to sustainable real assets in fast-growing and emerging economies in Asia.

TLEI is targeting an initial annual dividend yield of 2%-3% in 2022, gradually rising to at least 7% in periods after January 1, 2024. It will target a net asset value (NAV) total return of 10%-12% per year over the medium-to-long term.

"Asia is the world's largest and fastest growing consumer of energy, but it is also the largest emitter of carbon dioxide; it is critical for the future of the world that we address this,” ThomasLloyd chief executive Michael Sieg said, adding that the need for more sustainable energy is also creating an unparalleled investment opportunity.

(USD 1 = EUR 0.864)

(GBP 1 = USD 1.355/EUR 1.172)

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