9th Sep 2019 12:49
(Alliance News) - SDCL Energy Efficiency Income Trust PLC said Monday it has invested USD22 million into a portfolio of secured senior and subordinated energy loans in the US.
The portfolio comprises loans, leases and subscription agreements related to energy systems outsourcing and energy efficiency projects across the US.
The projects have been developed by Sparkfund, which delivers energy systems-as-a-service to commercial and industrial buildings through a network of energy firms.
The individual agreements with customers within the portfolio are aggregated with back-to-back funding provided by third parties.
SDCL Energy's investment will refinance those existing lending arrangements. The investment will be funded from SDCL's existing cash reserves.
"This represents SDCL's second investment in the US, which is an important and growing market for the strategy of the company. This portfolio relates to a widely diversified series of projects delivering returns through subscription based and other energy systems delivery models," said Jonathan Maxwell, chief executive of investment manager Sustainable Development Capital LLP.
"Energy systems-as-a-service is a growing market and SDCL is ideally placed to continue capitalising on this growth to deliver long-term, stable returns for shareholders," Maxwell added.
Shares in SDCL Energy were up 0.7% at 110.75 pence on Monday in London.
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