SDCL Energy to finance acquisitions with GBP-175m share issue

UK closed-ended investment fund SDCL Energy Efficiency Income Trust Plc (LON:SEIT) plans to raise around GBP 175 million (USD 242.1m/EUR 203.8m) in an ordinary share issue aimed at supporting its expansion through new investments.

SDCL, which is managed by investment firm Sustainable Development Capital LLP, will place roughly 158.4 ordinary shares at GBP 1.105 apiece, it said in a bourse filing on Thursday. The issue price represents a 6% discount on the closing price of the company’s stock on September 1.

The shares will be sold through an open offer, placing, offer for subscription and intermediaries offer to both existing and new shareholders. In the open offer, shareholders will be able to get one new ordinary share for every six existing ordinary shares held.

A prospectus in relation to the initial issue is due to be released shortly. Funds from the transaction will go to support organic investment opportunities, the fund said. Its investment manager has identified over GBP 200 million of such opportunities that will be available over the coming months. These include solar and storage projects in the US, onsite generation and energy efficiency and electric vehicle charging infrastructure projects in the UK.

SDCL has a portfolio of 41 energy efficiency assets in the UK, the US, Ireland, Spain and Singapore with a total value of GBP 720 million. Most of the assets are operational and only a small part is under construction or development. The fund has a current market capitalisation of GBP 796 million.

(GBP 1.0 = USD 1.383/EUR 1.165)

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