LONDON: SDCL Energy Efficiency Income Trust has completed the acquisition, previously announced on 20 September, of a portfolio of nine cogeneration projects in Spain from Sacyr S.A., a leading Spanish construction group.
SDCL Energy is the first UK-listed investment company of its kind to invest exclusively in the energy efficiency sector.
The portfolio consists of nine operational projects providing in aggregate 125 MW of clean and efficient energy generation. The portfolio includes five combined heat and power (CHP) plants, two olive processing plants and two biomass plants. Sacyr will continue to operate and maintain the portfolio.
The portfolio generates clean and renewable energy by operating at high levels of combined electrical and thermal efficiency, using the waste heat from the electricity generation for the industrial processes and using the biomass from the industrial processes to generate renewable electricity. The substantial majority of the portfolio’s revenues are from investment grade counterparties.
The acquisition, which is SEEIT’s largest since its IPO in December 2018, has been funded through a combination of its revolving credit and acquisition finance facilities and existing cash reserves.
The acquisition has been financed using approximately €79 million of existing cash and approximately €71 million of borrowings under SEEIT’s credit facilities. These have been drawn down to repay in full the project debt finance facility associated with the portfolio. The repayment of the project finance debt accounts for the increased cash consideration relative to the €64 million announced in September.
As announced on 18 October 2019, SEEIT raised an additional £100m via a placing of new ordinary shares as part of its existing Share Issuance Programme. Part of this has been deployed in this acquisition and the Investment Manager is actively progressing a significant pipeline of new investment opportunities, a number of which are at an advanced stage.
Commenting on the acquisition, Jonathan Maxwell, CEO and Founder of Sustainable Development Capital LLP, said: “We are delighted to have completed this acquisition. The quality of the assets and our ongoing partnership with Sacyr make this a very attractive opportunity for the Company.
This portfolio achieves high levels of combined electrical and thermal efficiency, as well as producing clean and renewable energy. It represents an investment in a highly cash generative and proven operational portfolio and further diversifies SEEIT, in terms of geography, technology and application. We are confident that this portfolio will make a significant contribution to SEEIT’s total returns.”