Sustainable Development Capital LLP (SDCL) has raised £100m to invest in energy efficiency projects via an initial public offering.
The SDCL Energy Efficiency Income Trust (SEEIT) will use the money to acquire nine initial projects valued at £57m and three others worth £30m.
These include combined cooling/heating and power plants (CCHP) 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.
The company said shares should start trading at 8am Monday (11 December).
SDCL said it targets a total return of 7-8 per cent per annum and an initial dividend yield of 5 per cent on the Initial Issue Price (100p), rising to 5.5 per cent in the year ending 31 March 2021 and a growing yield thereafter.
The trust is “a first of a kind investment company on the main market of the London Stock Exchange to focus on energy efficiency infrastructure that offers lower cost, cleaner and more reliable energy solutions, directly to the point of use”, according to Jonathan Maxwell, CEO and founder of Sustainable Development Capital LLP.
“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,” he added.
“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.”