SDCL energy efficiency fund plans GBP-150m London IPO

SDCL Energy Efficiency Income Trust plc (SEEIT) aims to raise as much as GBP 150 million (USD 193m/EUR 170m) from an initial public offering (IPO) in London to invest in a seed portfolio of energy efficiency projects.

This will be the first UK-listed investment fund with investments exclusively in the energy efficiency sector, SEEIT said on Thursday. The fund, itself, was set up recently and will be managed by Sustainable Development Capital LLP.

SEEIT expects the floatation to help it acquire a seed portfolio of energy efficiency projects and contracted investment opportunities in the UK, as well as a strong pipeline of near and medium-term investment opportunities. The seed portfolio will include 12 projects, of which nine schemes worth a total of GBP 57 million and three contracted investment commitments worth GBP 30 million. Most of the selected assets are operational and are “well diversified" across technologies and sectors, with low credit and regulatory risk. Among them is a combined cooling or heating power plants and light-emitting diode (LED) lighting projects across the UK.

IPO TIMETABLE

The receipt of application forms under the offer and placing commitments under the initial placing are due by December 5. Results will be published on the next day, while first admission of SEEIT’s stock and dealings are seen to start on December 11, 2018.

SEEIT will target an initial dividend yield of 5%. This is to grow to USD 5.5% in the year ending March 31, 2021 and rise further after that. The total targeted return is set at between 7% and 8% per year.

Jefferies Intl Ltd will act as sponsor and sole global coordinator for the offering. SEEIT said it has applied to list its ordinary shares for trading on the premium segment of the London bourse’s Main Market.

(GBP 1.0 = USD 1.284/EUR 1.131)

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