Downing Renew& Infra - Acquisition of Two Hydropower Plants
02/03/2023 07:00
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RNS Number : 5940R Downing Renewables & Infrastructure 02 March 2023
2 March 2023
Downing Renewables & Infrastructure Trust plc
Acquisition of Two Hydropower Plants
The Board of Downing Renewables & Infrastructure Trust plc (the "Company"
or "DORE") is pleased to announce two hydropower acquisitions totalling £5.1
million (€5.8 million).
Double hydropower acquisition totalling c. 8 GWh annual average production
DORE has agreed to acquire two operational hydropower plants located in
Sweden's SE2 pricing region for a total of £5.1 million (€5.8 million). The
acquisitions are being funded through Downing Hydro AB ("DHAB") using
available cash reserves.
The first acquisition, completed in February 2023, is a c. 2.5 GWh hydropower
plant in Högforsen, on the Gillerån river, a tributary to the Indalsälven
river. The plant was commissioned in 1915 and in 2011, the plant underwent a
major renovation, including replacement of generator, turbine and control
system.
The second acquisition is of a c. 6 GWh hydropower plant in the municipality
of Gottne, located on the Moälven river. The plant underwent a major
refurbishment in 2015. The acquisition is scheduled to be completed early
March 2023.
The acquisitions increase the total number of DORE's managed Swedish
hydropower plants to 28 with a total annual average production of 197 GWh. The
new hydropower plants will be integrated into the existing portfolio and will
continue to support DORE's highly diversified investment strategy, designed to
increase the stability of revenues and consistency of income to shareholders.
Related Party Transaction
Magnus Olofsson, the vendor of the Gottne hydropower plant and a director of
DHAB, is a related party of the Company under the Listing Rules. As such, the
acquisition of the portfolio and entry by DHAB into an associated transition
services agreement (the "Transaction") amounts to £3,591,099, which
constitutes a smaller related party transaction under Listing Rule 11.1.10 R.
Accordingly, the Company has received written confirmation from its Sponsor
that the terms of the Transaction with the related party are fair and
reasonable as far as shareholders of the Company are concerned.
Tom Williams, Partner, Head of Energy & Infrastructure at Downing LLP,
said: "We are excited not only by the potential of these two attractive
acquisitions but also the other well advanced projects in our near term
pipeline. Hydropower is a crucial source of renewable power in the energy
transition thanks to its storable quality which helps reduce price volatility
and maximises the value of the energy stored for both end users and our
investors. With hydropower quickly becoming a prevalent player within our
accrescent portfolio, we remain committed to our track-proven investment
strategy of diversification across geography, technology, revenue and project
stage."
ENDS
Contact details:
Downing LLP - Investment Manager to the Company +44 (0)20 3954 9908
Tom Williams
Singer Capital Markets - Sponsor, 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 / +44 (0)7425 536 903
Tania Wild 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 £1.8 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.50 professionals dedicated to renewable energy and
infrastructure and a proven track record in renewables. Since 2010, Downing
has made more than 175 investments and has c.£785 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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