SDCL energy efficiency fund selling shares to finance acquisitions

Recently listed investment fund SDCL Energy Efficiency Income Trust plc (LON:SEIT), or SEEIT, seeks to raise more funds through a share placing so it could finance upcoming acquisitions.

SEEIT launched on Tuesday a non pre-emptive placing of new ordinary shares at a price of GBP 1.01 (USD 1.32/EUR 1.17) apiece, which is a roughly 1.7% discount to the closing price the prior day. While the fund did not mention how much it looks to raise this time, the move is being made under a previously announced share issuance programme for up to 500 million shares, including the 100 million ordinary shares issued as part of its initial public offering (IPO) in December.

The placing will close on April 16, 2019. Jefferies International Limited is serving as the sole bookrunner.

SEEIT plans to use the proceeds in combination with debt financing to fund the purchase of certain pipeline project assets. This includes a diversified operational portfolio of co-generation assets in Southern Europe for which the fund is already holding advanced negotiations, and other investment opportunities such as rooftop solar projects in the UK and Portugal.

The company raised GBP 100 million gross in its London IPO in December 2018 and then immediately acquired a seed portfolio comprising nine energy efficiency projects for a total of GBP 57 million in cash. It also has three contracted investment opportunities for an additional GBP 30 million.

(GBP 1.0 = USD 1.308/EUR 1.161)

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