SDCL Energy Efficiency Income Trust PLC on Friday said it secured the outstanding balance of loan facilities against an operational portfolio of LED lighting projects in the US.
SDCL Energy Efficiency invests in assets in the energy efficiency sector, such as electric vehicle charging infrastructure and geothermal and biogas projects.
The company said the $31 million balance of loan facilities was held by Future Energy Solutions Lighting Holdings, one of its investees.
The loan ‘provides SEEIT with the entirety of the economic interest in a fully contracted portfolio comprising 1,500+ contracts with remaining tenors of up to 13.5 years,’ SDCL Energy said.
‘The investment creates the potential to realise operational and financial efficiencies across the FES portfolio, whilst on a standalone basis it benefits from strong cashflow yields and is forecast to deliver double-digit unlevered returns. The transaction also secures the company’s access to a customer base with a strong credit record, offering future incremental investment and re-contracting opportunities,’ SDCL Energy said.
Further, the company said that it is actively exploring opportunities to recycle capital, including through selective disposals.
SDCL shares were 0.6% higher at 62.07 pence each in London on Friday morning.
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