Downing Renew& Infra - Acquisition of Swedish Electricity Distributor
13/07/2023 07:00
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RNS Number : 8570F Downing Renewables & Infrastructure 13 July 2023
13 July 2023
Downing Renewables & Infrastructure Trust plc
(the "Company" or "DORE")
Acquisition of 16-18 GWh Swedish Electricity Distributor
DORE is pleased to announce the acquisition of a Swedish Electricity
Distribution System Operator, Blåsjön Nät AB ("Blåsjön"), for c.£7
million. The Company has acquired 100% of the share capital in Blåsjön, a
regulated electricity distributor, which delivers 16-18 GWh per annum of
electricity through medium and low voltage lines to its c.1,500 domestic and
business customers in Strömsund, northern Sweden.
This is DORE's second acquisition in the grid and grid stability services
sector, and further supports the Company's strategy of constructing a
diversified portfolio designed to increase the stability of revenues and
consistency of income to shareholders. The acquisition will be funded through
the Company's revolving credit facility, under which drawings and commitments
are now c.£18 million.
Blåsjön's grid network is 436km in length and comprises overhead lines,
three primary and 161 secondary substations. Blåsjön operates a licensed
monopoly in a highly regulated environment, generating consistent and
predictable cashflows that are correlated to Swedish inflation and interest
rates. Grid networks like this are operating businesses with very long-life
assets that are expected to operate and generate substantial yields for
generations.
Tom Williams, Partner, Head of Energy & Infrastructure at Downing LLP,
said: "The accretive acquisition of Blåsjön highlights our continued
ambition to further diversify DORE's portfolio. By investing in long-life
assets like electricity distribution grids, the Company can access long term,
inflation-linked revenues that are not dependent on the sale of electricity in
the wholesale market. We are excited by this and potential future investments
that the Company can make in this sector."
ENDS
Contact details:
Downing LLP - Investment Manager to the Company +44 (0)20 3954 9908
Tom Williams
Singer Capital Markets - Joint Corporate Broker +44 (0)20 7496 3000
Robert Peel, Alaina Wong, Alex Emslie (Investment Banking)
Sam Greatrex, Alan Geeves, James Waterlow, William Gumpel (Sales)
Winterflood Securities Limited - Joint Corporate Broker +44 (0)20 3100 0000
Neil Morgan (Corporate Finance)
Darren Willis, Andrew Marshall (Sales)
TB Cardew - Public relations advisor to the Company +44 (0)20 7930 0777
Ed Orlebar +44 (0)7738 724 630
Tania Wild +44 (0)7425 536 903
DORE@tbcardew.com (mailto:DORE@tbcardew.com)
About Downing Renewables & Infrastructure Trust plc (DORE)
DORE is a closed-end investment trust that aims to provide investors with an
attractive and sustainable level of income, with an element of capital growth,
by investing in a diversified portfolio of renewable energy and infrastructure
assets in the UK and Northern Europe. DORE has been awarded the London Stock
Exchange's Green Economy Mark in recognition of its contribution to the global
'Green Economy' and also in 2022 DORE won 'Renewables Fund of the Year' at the
Sustainable Investment Awards.
The Board classifies DORE as a sustainable fund with a core objective of
accelerating the transition to net zero through its investments, compiling and
operating a diversified portfolio of renewable energy and infrastructure
assets to help facilitate the transition to a more sustainable future. The
Company believes that this directly contributes to climate change mitigation.
DORE's strategy, which focuses on diversification by geography, technology,
revenue and project stage, is designed to increase the stability of revenues
and the consistency of income to shareholders. For further details please
visit www.doretrust.com (http://www.doretrust.com/)
LEI: 2138004JHBJ7RHDYDR62
About Downing LLP
Downing is a responsible investment manager established in London in 1986. We
currently manage £1.9 billion of assets under a broad range of investment
mandates across our funds, investment trusts and tax-efficient products. As a
certified B Corporation, we are focussed on creating a sustainable future, our
key investment areas are renewable energy, infrastructure, property and
healthcare.
Downing has c.60 professionals dedicated to renewable energy and
infrastructure and a proven track record in renewables. Since 2010, Downing
has made more than 180 investments and has c.£760 million of assets under
management in solar, wind, hydro and battery storage technology.
This announcement is not for publication or distribution, directly or
indirectly, in or into the United States of America. This announcement is not
an offer of securities for sale into the United States. The securities
referred to herein have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States, except pursuant to an applicable exemption from registration.
No public offering of securities is being made in the United States.
For further details please visit www.downing.co.uk
(http://www.downing.co.uk/)
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