REG - Ecofin US Renewables - Net Asset Value(s)

Ecofin US Renewables Infrastructure TrustAnnouncement

31/10/2022 07:00

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RNS Number : 5657E  Ecofin US Renewables Infrastr.Trust  31 October 2022

31 October 2022

 

ECOFIN U.S. RENEWABLES INFRASTRUCTURE TRUST PLC

(the "Company")

 

Quarterly Net Asset Value

 

The Company announces that its unaudited net asset value as at 30 September
2022 on a cum-income basis was $0.9537 per ordinary share (30 June 2022:
$0.9732) or $131.7 million (30 June 2022: $134.3 million).

·    a $1.3 million decrease in Fair Market Value ("FMV") of investments
due in part to the expected quarterly roll-off of distributable cash flows in
the forward-looking discounted cash flow models, partly offset by a cumulative
increase in net working capital items on the balance sheet of each
investment;

 

·    a $0.5 million decrease due to a non-recurring adjustment to the
Beacon 2 and 5 solar assets' FMV related to a property tax settlement and
future property tax obligations owed by the projects;

 

·    a $0.8 million decrease in financial assets, driven largely by fund
expenses, $1.9 million of dividends paid and accrued interest expense on the
Company's drawn Revolving Credit Facility balance.

 

·    Discount rates used to determine FMVs remained flat this quarter
after a 25 bps increase during Q2 2022

 

Investment Highlights

·    During the quarter, the Company closed and began construction on
three additional projects within the Echo Solar Portfolio, bringing the
portfolio total to six projects comprising 36.0 MW(DC) in Minnesota, Virginia
and Delaware with 25-year investment-grade utility offtakers.

·    Construction across these six Echo Solar projects is expected to be
completed between Q4 2022 and Q2 2023. The Company currently accounts for
projects under construction at cost, with assets revalued at FMV once
operational.

·    The Company continues to evaluate the potential to close on four
additional projects within the Echo Solar Portfolio original commitment.

·    Following the period end, the Company closed an $18 million tax
equity financing commitment for the Echo Solar Portfolio, of which $1.7
million was drawn on 7 October 2022. The balance of the commitment will be
drawn upon completion of certain construction milestones as the projects reach
commercial operation.

·    The recent passage of the Inflation Reduction Act in the U.S. is
expected to have an additional positive impact on the Echo Solar Portfolio
with the potential to earn further tax credits above the existing 30%
Investment Tax Credit, which may create additional valuation uplift.

 

Investment Manager Update

·    On 24 October, 2022, the Company announced that the Company's
Investment Manager, Ecofin Advisors, LLC, had appointed Eileen Fargis as
Managing Director - Private Equity Infrastructure and as the Ecofin group lead
and portfolio manager for RNEW with immediate effect. Eileen will work closely
to manage and develop the Company's portfolio with the team of experienced
professionals at Ecofin, including Ed Russell, Senior Managing Director and
Jason Benson, Director of Private Renewable Energy. Eileen has over 20 years'
industry experience, most recently as Head of Investments for InterEnergy
Holdings (UK) Ltd, an independent developer, owner, and operator of 2.1 GW of
energy generation assets and a utility in the Caribbean and Latin America.
Eileen is the former Co-Head of the $1 billion IFC African, Latin American and
Caribbean Fund LP, a private equity fund investing on behalf of the
International Finance Corporation.

 

 

For further information, please contact:

 

 Ecofin Advisors, LLC (Investment Manager)                                       +44 20 7451 3023

 Edward Russell

 Eileen Fargis

 Jason Benson

 Michael Hart

 Peel Hunt LLP (Joint Corporate Broker)                                          +44 20 7418 8900

 Liz Yong

 Luke Simpson

 Huw Jeremy

 Stifel (Joint Corporate Broker)                                                 +44 20 7710 7600

 Mark Bloomfield

 Rajpal Padam

 Madison Kominski

 Sanne Fund Services (UK) Limited (Company Secretary)                            +44 20 3327 9720

 Martin Darragh

 Maria Matheou
 FTI Consulting (Financial PR)                                                   +44 7976 075797

 Matthew O'Keeffe

 Mitch Barltrop

 Vee Montebello

 

About Ecofin Advisors, LLC

 

Ecofin is a sustainable investment firm with roots dating to the 1990s and a
global footprint with offices in the US and UK. We are driven by the idea that
sustainable investment can deliver strong risk-adjusted returns while making a
true impact on the environment and society. Our strategies offer global
solutions in private and public securities that address global challenges in
climate action, water and sustainable communities. Through these strategies we
seek to achieve positive impacts that align with the UN Sustainable
Development Goals and are accessible through a variety of vehicles.

 

About Ecofin U.S. Renewables Infrastructure Trust PLC ("RNEW")

Ecofin U.S. Renewables Infrastructure Trust PLC ("RNEW" or the "Company") is
a closed ended investment company incorporated in England and Wales, targeting
attractive risk-adjusted returns and a sustainable dividend yield through a
differentiated investment strategy focused on the middle market of U.S.
renewable energy. The Company's ordinary shares ("Shares") were admitted to
the Official List of the Financial Conduct Authority and to trading on the
premium listing segment of the main market of the London Stock Exchange on 22
December 2020. The Company's ordinary shares can be traded in USD (ticker
"RNEW"), or in GBP (ticker "RNEP"). The Company has been awarded the London
Stock Exchange Green Economy Mark.

 

Further information on the Company can be found on its website
at https://uk.ecofininvest.com/funds/us-renewables-infrastructure-trust-plc/
(https://uk.ecofininvest.com/funds/us-renewables-infrastructure-trust-plc/) .

 

The Company's LEI is 2138004JUQUL9VKQWD21.

 

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