TIDMAEET
RNS Number : 2406K
Aquila Energy Efficiency Trust PLC
20 December 2022
20 December 2022
Aquila Energy Efficiency Trust PLC
(the "Company")
Trading Update
Material Commitment and Deployment Progress
The Company is pleased to announce an update on the continued
progress in the commitment and deployment of capital since the last
update published on 15 September 2022.
Commitments increased materially to GBP87.3m as at 19 December
2022 (31 August 2022: GBP55.5m). Total income-generating, deployed
capital has increased to GBP54.4m (31 August 2022: GBP32.1m). The
Company is expected to achieve an average gross unlevered project
yield of 8.0% over all investments made to date.
The Board has approved commitments totalling a further GBP8.7m,
which are awaiting financial close. These commitments would be in
addition to the GBP87.3m commitments made. The Investment Adviser
currently expects that by the end of Q1 2023 approximately 80% of
the capital available for investment will have been deployed.
Further deployment from existing and new commitments will be made
in the course of 2023.
The Company's portfolio now comprises 30 diverse investments in
Germany, Italy, Spain and the United Kingdom with 19 different ESCO
partners, across a wide range of technologies including Solar PV,
Combined Heat & Power, Biogas, Sub-metering, Wind and Water
Management together with the suite of building energy efficiency
technologies deployed in Italian Superbonus projects. It is
noteworthy that there has been a significant increase in
investments in Germany with the completion of two large investments
with commitments of GBP18.7m and deployment to date of GBP15.0m
with GBP3.7m remaining to be deployed.
Investments since 31 August 2022 include:
-- GBP10.7m investment to acquire receivables due under water
management service agreements for condominiums and multi-family
homes in Germany, mainly managed by large property managers.
-- GBP8.0m commitment to fund the acquisition of a biogas plant
and investment in liquefaction equipment by one of Germany's
leading biogas development companies with more than 20 years'
experience in the sector.
-- GBP5.8m commitment to fund the refurbishment of condominiums
in Spain under the "Programa de Rehabilitacion Energetica de
Edificios" ("PREE") incentive scheme. The investment is based on
the purchase of receivables generated by energy saving
contracts.
-- GBP3.5m commitment to fund Solar PV plants in
self-consumption for residential properties located around Madrid,
Barcelona and Valencia originated by Solarnub, a fast-growing
trading management platform for solar companies; this is the second
investment with Solarnub.
-- GBP0.9m commitment to fund a Solar PV project for
self-consumption for a leading Spanish ceramic tiles manufacturer,
developed by a Valencia based ESCO.
-- GBP0.8m commitment to fund a Solar PV project for
self-consumption for an Italian manufacturing business.
-- GBP0.6m commitment to invest in a cluster of Solar PV
projects in self-consumption located in Cordoba and Granada marking
the start of a new relationship with a Spanish developer based in
Córdoba
-- GBP0.5m of other commitments including the fourth Solar PV
project with an Italian developer and a second Solar PV project
with another Spanish developer based in Barcelona; and
-- GBP0.4m investment in operational small wind farms in the UK
which benefit from feed-in and export tariffs and provide onsite
power for self-consumption.
The CHP project being developed by Ega Energy for Vale of
Mowbray Limited, referred to in the Half Yearly Financial Report
for the six months ended 30 June 2022, is on hold due to this
company having entered into administration. The amount of GBP0.9m
has been invested in the project with the majority of the capital
applied to acquire the CHP equipment, which is not yet onsite. Ega
Energy is identifying other clients who may use the equipment if
the Vale of Mowbray site is not acquired by a business with a
sufficiently strong credit rating. The Investment Adviser believes
that its contractual arrangements with Ega Energy protect the value
of the investment made to date and so no impairment has been made
at this point.
The Board and the Investment Adviser believe that the market
outlook for energy efficiency investments remains positive and that
energy savings should be considered the "first fuel". Investments
to reduce primary energy consumption and to generate on-site
energy, the focus of the Company's investment strategy, address
critical concerns for businesses seeking to reduce their exposure
to high energy prices and transition to "net zero". Notwithstanding
this environment, the Investment Adviser has experienced delays to
decision making by corporates, which it attributes to significant
volatility in wholesale electricity prices and uncertainties over
the impact of new energy policies designed to address this issue,
for example, energy price caps. Nevertheless, energy policies have
become clearer, including in the United Kingdom, and the Board and
Investment Adviser expect opportunities for long term energy
efficiency contracts will continue to accelerate and that it is
well placed to secure attractive investment opportunities through
the growing number of partnerships that have been forged with
European energy services companies.
The next semi-annual NAV, as at 31 December 2022, will be
published in early February 2023.
For further information please contact:
Aquila Capital (Investment Adviser) Via Buchanan
Buchanan (Financial PR) 020 7466 5000
Charles Ryland, Henry Wilson, George Beale
Peel Hunt (Broker) 020 7418 8900
Luke Simpson, Huw Jeremy (Investment Banking)
LEI: 213800AJ3TY3OJCQQC53
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