REG - Downing Renew& Infra - Acquisition of 18GWh hydropower portfolio

Downing Renewables & Infrastructure TrustAnnouncement

05/05/2022 07:00

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RNS Number : 3785K  Downing Renewables & Infrastructure  05 May 2022

05 May 2022

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Downing Renewables & Infrastructure Trust plc

("DORE" or the "Company")

 

Acquisition of an 18GWh hydropower portfolio in Sweden

 

Intention to raise additional equity

 

Notice of Q1 NAV update

Acquisition

Downing Renewables & Infrastructure Trust plc (LSE: DORE) has entered into
an agreement to acquire, through Downing Hydro AB ("DHAB"), a 100% interest in
a portfolio of operational run-of-river hydropower plants in Sweden (the
"Portfolio") for a total consideration of approximately EUR 20 million (c.£17
million), from Batten AB and Daturum AB. The acquisition will initially be
funded by drawing down on DORE's £25 million revolving credit facility
("RCF"), meaning the RCF will be 68% drawn.

The Portfolio comprises two hydropower plants located in Sweden's southern SE4
pricing region. The plants were comprehensively renovated between May 2014 and
September 2019 and have an aggregate forecast annual production of c.18 GWh
p.a.

The newly acquired hydropower plants will be fully integrated into DORE's
existing hydropower operational, control and dispatch arrangements. This
acquisition will increase the number of DHAB hydropower plants to 19 and the
total forecast annual production of the hydropower portfolio to c.174 GWh, a
c.60% increase since 31 December 2021.

These are DORE's first assets to be located in the attractive southern SE4
pricing region, which has the highest wholesale power prices in Sweden,
benefitting from export cables to continental Europe. The acquisitions in a
new price zone will further support DORE's strategy of focusing on
diversification by geography, technology, revenue and project stage, designed
to increase the stability of revenues and the consistency of income to
shareholders.

Intention to raise equity

The Investment Manager continues to see a strong pipeline of investment
opportunities. In order to access that pipeline, and to repay drawings under
the RCF, the Company is considering the issue of new ordinary shares to fund
additional investments, with the wider aims of increasing the Company's
diversification, driving efficiencies of scale at the portfolio level,
spreading the fixed costs over a wider asset base and increasing liquidity for
current and future shareholders.

Any decision on an equity raise is at the absolute discretion of the Directors
and will be subject to prevailing market conditions and investor sentiment.
Should the Company decide to proceed with an equity raise, a further
announcement will be made in due course.

Q1 NAV update

DORE will announce its Q1 NAV update and dividend declaration in the week
commencing 9 May 2022.

Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP,
commented: "We are delighted to announce another accretive acquisition for
DORE in the hydropower sector, the latest in a series of excellent
opportunities for expansion of the DHAB platform that the team has worked so
hard to establish. Hydropower is one of the most effective sources of
renewable energy, producing by far the most energy per unit of capacity of all
of our renewable investments.  When combined with the storage capacity of the
reservoirs in the existing portfolio, we think it is a compelling investment.
 It will play a key role in furthering the transition to net zero.

"Raising further equity for the Company should allow us to continue to further
enhance the portfolio for the benefit of shareholders by deploying into the
attractive pipeline that we have available to us."

Contact details:

 

 Downing LLP - Investment Manager to the Company                         +44 (0)20 3954 9908

 Tom Williams

 Singer Capital Markets - Joint Corporate Broker to the Company          +44 (0)20 7496 3000

 Robert Peel, Alaina Wong, Asha Chotai (Investment Banking)

 Sam Greatrex, Alan Geeves, James Waterlow, Paul Glover (Sales)

 Winterflood Securities Limited - Joint Corporate Broker to the Company  +44 (0)20 3100 0000

 Neil Morgan (Corporate Finance)

 Darren Willis (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'.

 

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 LLP is a London-based investment management firm.   It has over
25,000 investors and currently manages c.£1.6 billion of equity invested into
businesses across a range of sectors, from renewable energy, care homes,
health clubs, and children's nurseries, to technology and sports
nutrition. Downing has a demonstrable track record in renewables, having made
more than 175 investments into solar parks, wind farms and hydroelectric
plants since 2010.

 

For further details please visit www.downing.co.uk
(http://www.downing.co.uk/)

 

 

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