TIDMTLEI TIDMTLEP
RNS Number : 9953E
ThomasLloyd Energy Impact Trust PLC
02 November 2022
LEI: 254900V23329JCBR9G82
2 November 2022
ThomasLloyd Energy Impact Trust plc
Entry into Vietnam through first solar acquisition and update on
deployment of IPO proceeds
ThomasLloyd Energy Impact Trust plc ("TLEI" or the "Company") ,
the renewable energy investment trust providing direct access to
sustainable energy infrastructure in fast-growing and emerging
economies in Asia, is pleased to announce its expansion into
Vietnam, via a new local partnership with an investment agreement
for an initial US$30m with Solar Electric Vietnam ("SEV"). As the
first transaction in this new partnership, the Company is also
pleased to announce that, subject to normal regulatory and other
completion conditions, it has entered into an agreement to acquire
Viet Solar System Company Limited ("VSS"), a privately-owned
company which holds 6.12 MWp of rooftop solar assets ("RTS").
Of the US$30 million of initial funding for renewable energy
assets in Vietnam provided for in the investment agreement with
SEV, US$4.6 million will be utilised to acquire VSS. The remaining
US$25.4 million is expected to be deployed on additional
opportunities in Vietnam, which have predominantly been identified,
and include a portfolio of a 19 MWp of RTS currently under
exclusivity to the Company. Based on this investment agreement,
TLEI is pleased to announce that, once this initial facility has
been fully utilised, more than 86% of net IPO proceeds will have
been deployed.
Renewable energy in Vietnam
The rapid growth and industrialisation experienced in Vietnam in
recent years has led to a three-fold increase in the country's
electricity consumption, outpacing the growth in electricity
output. As of 2021, Vietnam's total installed capacity stood at
70,470 MW. The country's installed capacity is dominated by three
generating technologies; coal, hydro (large and small scale) and
solar, accounting for 36.2%, 26.5% and 22.1% of total capacity
respectively. Vietnam has made significant progress in the
deployment of renewable energy. The country's considerable natural
endowments mean a substantial transition away from fossil fuel
generation is, with the appropriate investment, readily
attainable.
Partnership with SEV
TLEI and SEV have signed an investment agreement for initial
funding of up to a total of US$30 million to purchase renewable
energy assets already owned, controlled or identified by SEV or
originated by the investment manager, ThomasLloyd Global Asset
Management (Americas) LLC. TLEI also holds a right of first refusal
on new construction-ready or operational projects developed or
originated by SEV, meeting pre-determined investment criteria. TLEI
will acquire, via its subsidiary ThomasLloyd Energy Impact Holdings
Ltd, 99.8% of VSS, creating a renewable energy platform for the
Vietnamese market, with technologies including solar, wind and
biomass. SEV is a well-established engineering, procurement and
construction provider and renewable energy developer and has a
track record of developing and constructing more than 80 MWp of
solar projects supplying state-owned Electricity Vietnam ("EVN")
and foreign-owned corporate and industrial offtakers. This new
partnership in Vietnam supplements the existing local partnerships
of the Company's investment manager in its other target
markets.
VSS portfolio
The portfolio of 6.12 MWp of RTS assets being acquired consists
of installations at two sites near Ho Chi Minh City which are
named, 'Hoang Thong' and 'Mo Cay', both with 20-year US
Dollar-indexed fixed-price PPAs with EVN. Both projects are located
on the rooftops of factories, whereby a minority of the electricity
generated is sold directly to the factory at a higher price than
the EVN rate, with any surplus electricity not consumed by the
factory sold to EVN under the PPAs. The impact of these assets is
the supply of electricity to 3,589 people and avoidance of 7,324
tonnes of CO(2) p.a. As part of the acquisition process, VSS will
be renamed ThomasLloyd Energy Impact Holdings Vietnam JSC.
Near term pipeline in Vietnam
SEV has also identified additional off-market solar assets with
a total capacity of 137 MWp, which includes 11 MWp of assets under
negotiation for exclusivity to the Company and in respect of which
due diligence is well advanced.
Michael Sieg, Group Chief Executive of the Investment Manager
commented:
"Despite challenging market circumstances, we are delighted to
have formally entered Vietnam, a market that we have been observing
for a number of years, as we continue to execute on our investment
strategy. Finding the right local partners and establishing
proprietary platforms to develop new primary assets has always been
a core principle of our investment philosophy and process and we
are delighted to welcome SEV as our on-the-ground partner. This
latest investment allows us to deliver our 'Triple Return' of
providing attractive investment returns for investors by investing
where capital makes a meaningful, measurable and significant impact
and tackles climate change at source. We look forward to
accelerating our pipeline momentum."
Following the completion of the acquisition of the 57% interest
in SolarArise in India, which is expected to occur shortly and
following full utilisation of the investment agreement for Vietnam
announced today, the Company will have deployed more than 86% of
net IPO proceeds. TLEI's portfolio now comprises three solar power
projects in the Philippines, seven solar power projects in India
(including a 200 MW construction-ready asset) and two solar power
projects in Vietnam with a combined capacity of 520 MW. This latest
acquisition further enhances TLEI's geographic and currency
diversification.
Enquiries:
T homasLloyd Group +41 (0) 79 659 6513
Anneliese Diedrichs Anneliese.diedrichs@thomas-lloyd.com
Shore Capital (Joint Corporate Broker) Tel: +44 (0) 20 7408
4050
Robert Finlay / Rose Ramsden (Corporate)
Fiona Conroy (Corporate Broking)
Peel Hunt LLP (Joint Corporate Broker) Tel: +44 (0) 20 7418
8900
Luke Simpson
Huw Jeremy
About ThomasLloyd Energy Impact Trust Plc
ThomasLloyd Energy Impact Trust plc listed on the premium
segment of the London Stock Exchange in December 2021 and was
awarded the London Stock Exchange's Green Economy Mark upon
admission.
In 2021, ThomasLloyd Group participated in the Mobilising
Institutional Capital Through Listed Product Structures (MOBILIST)
competition, which engaged financial institutions in a search for
the best sustainable infrastructure proposals that can list either
on the London Stock Exchange or local exchanges. ThomasLloyd Group
was the first fund manager to complete this process successfully
and received US$32.3 million in investment from the UK government
into TLEI.
The Company has a triple return investment objective which
consists of:
-- providing Shareholders with attractive dividend growth and
prospects for long-term capital appreciation (the financial
return);
-- protecting natural resources and the environment (the environmental return); and
-- delivering economic and social progress, helping build
resilient communities and supporting purposeful activity (the
social return).
The Company seeks to achieve its investment objective by
investing directly in a diversified portfolio of sustainable energy
infrastructure assets in the fast-growing and emerging economies in
Asia. The Company invests in unlisted sustainable energy
infrastructure assets in the areas of renewable energy power
generation, transmission infrastructure, energy storage and
sustainable fuel production, including utilising different
technologies to reduce revenue variability.
The Company aims to generate additional value for its investors
through focusing its investments on construction-ready or
in-construction projects. The Company only invests in such
pre-operational assets where: (i) an offtake agreement has been
entered into; (ii) the land on which the project is situated is
identified or contractually secured where appropriate; and (iii)
all relevant permits have been granted. Offtake agreements will
typically benefit from long-term fixed-price power purchase
agreements, capacity contracts or other similar revenue contracts
with creditworthy (primarily investment grade) private and public
sector buyers.
As is the case for all ThomasLloyd funds, the Company is
expected to qualify as an Article 9 fund under the EU Sustainable
Finance Disclosure Regulation (SFDR). Further information on the
Company can be found on its website at
http://www.tlenergyimpact.com .
About the Investment Manager
The Investment Manager is a wholly-owned subsidiary of
ThomasLloyd Group ("ThomasLloyd" or the "Group"). Founded in 2003,
the Group is a leading impact investor and provider of climate
financing. ThomasLloyd is a pure play impact investor and aims to
apply a robust, socially and environmentally responsible investment
approach that is geared towards reducing carbon emissions and
improving economic prospects, while reducing investment risk
through diversification across countries, sectors and
technologies
Over the last decade, ThomasLloyd has deployed over US$1 billion
across 16 projects in renewable energy power generation,
transmission and sustainable fuel production with a total capacity
in excess of 700 MW.
Since 2013, ThomasLloyd has been measuring and reporting on the
impact of its investments, creating an empirical database showing
the positive impact of their investments in sustainable energy
infrastructure in high growth and emerging markets in Asia.
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END
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