SDCL looks to raise £100m via share placing

1st Sep 2022 08:38

(Sharecast News) - Investment company SDCL Energy Efficiency Income Trust will look to raise roughly £100.0m via the issue of new ordinary shares in order to invest in its "substantial pipeline of opportunities" while also maintaining capital discipline.

SDCL said on Thursday that it will issues the new ordinary shares in the capital of the company at a price of 113.0p to 117.0p per share.

Following the expected completion of its recent £100.0m acquisition of United Utilities Renewable Energy, as well as approximately £80.0m of commitments to eight different organic follow-on opportunities expected to arise over the next 12 months, SDCL will have committed all of its available cash and "substantially committed" its £145.0m revolving credit facility.

The London-listed company highlighted that it has "a strong pipeline of potential investment opportunities" beyond its committed capital totalling over £400.0m, which includes over £175.0m of organic follow-on opportunities within its existing portfolio, with the remainder being a number of new investment opportunities in various stages of due diligence.

In addition to the placing, SDCL intends to make an offer of new ordinary shares available on the REX platform, in which retail investors will be invited to participate. The maximum aggregate size of the retail offer will be capped at the sterling equivalent of €8.0m.

As of 0835 BST, SDCL shares were down 0.60% at 115.80p.

Reporting by Iain Gilbert at Sharecast.com