SDCL Energy Efficiency Income Trust (Seeit) has begun trading on the main market of the London Stock Exchange, claiming to be the first such company to focus exclusively on energy efficiency infrastructure.
On 7 December the company announced it had raised £100 million in its Initial Public Offering. Seeit targets a total return of 7-8% per annum with a targeted initial dividend yield of 5.0%. by reference to the Initial Issue Price, rising to 5.5% in the year ending 31 March 2021 and a growing yield thereafter.
Assets in its seed portfolio include combined cooling/heating and power plants at a Citi data centre and St Bartholomew’s Hospital in London, as well as LED lighting projects for hundreds of Santander properties and over 100 NCP car parks in the UK
Following the launch, Seeit chair Tony Roper said: “We are very pleased with the response from a broad range of high quality investors to our Initial Public Offering, despite challenging market conditions.
“…We launch with a strong portfolio and pipeline of energy efficiency projects, which are well suited to Seeit’s investment objectives and strategy.”
Jonathan Maxwell, chief executive and founder of Sustainable Development Capital, said, “Against a background of constrained energy supply and relatively high costs, together with concerns about carbon emissions and security of energy supply, this is a sector that will see sustained growth. This is an asset class which is not reliant on government subsidies and is uncorrelated to traditional equity markets. We look forward to delivering a stable and growing income stream from our existing portfolio and growth from attractive acquisition opportunities.”