REG - Triple Point Energy - Capital Markets Event, BESS Update, New Investment

Triple Point Energy TransitionAnnouncement

28/09/2023 07:00

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RNS Number : 9158N  Triple Point Energy Transition PLC  28 September 2023

28 September 2023

Triple Point Energy Transition plc

("TENT" or the "Company" or, together with its subsidiaries, the "Group")

CAPITAL MARKETS EVENT, BATTERY STORAGE UPDATE AND NEW INVESTMENT

 

Capital Markets Event

Triple Point Energy Transition plc (ticker: TENT), the London Stock
Exchange listed investment company focused on building a portfolio of
diversified infrastructure investments that support the energy transition,
will be hosting a Capital Markets Day today, at which analysts and investors
will have the opportunity to hear from the Investment Manager, Triple Point
Investment Management, and the Hydro-electric portfolio's Asset Manager, Green
Highland Renewables, about the Group's portfolio in greater detail. The senior
management team of the Investment Manager will provide further insight into
the high conviction investments held within the portfolio, including a
detailed review of the Hydro-electric and the Battery Energy Storage System
("BESS") Portfolios. The team will also highlight the prospects for the
Company to create value for shareholders from its existing assets as well as
showcasing examples from the pipeline and areas of focus going forward. TENT
benefits from some of the highest levels of income protection in its peer
group with 93% of cashflows over the next 13 years being underpinned by
contracted revenues, as well as some of the lowest levels of volume generation
risk, with limited exposure to construction risks.

 

Battery Storage Update

The Investment Manager will discuss details relating to the announcement made
on 31 July 2023 in respect of Virmati Energy Ltd (trading as "Field"), a
battery storage counterparty, to whom the Group had committed a £45.6 million
debt facility in March 2022. In this announcement the Company disclosed that
Field had successfully raised a £200 million equity investment from DIF
Capital Partners (via its DIF Infrastructure VII Fund) ("DIF"). Subsequent to
this development, TENT and Field initiated discussions to assess the ongoing
lending requirements of the borrower. Both parties arrived at a mutual
decision to resize the facility to £37.0 million, secured over the assets of
the 4 battery storage assets identified previously. This positive development
provides TENT with an opportunity to deploy the balance of £8.6 million into
higher returning pipeline opportunities, with the Company's current average
pipeline return being 9.9%. The remaining amount committed to Field of £26.9
million will, as previously communicated, utilise the Company's revolving
credit facility ("RCF"). The impact of this is not expected to materially
impact TENT's earnings in FY24.

 

New Investment

TENT is also pleased to announce the provision of a £2.3
million receivables financing facility to Boxed Light Services Limited
("Boxed"). Boxed installs efficient Light Emitting Diode ("LED") lights and
controls at Places for People Homes Limited, ("Places for People") sites, part
of the Places for People group, one of the UK's leading social enterprises.

 

The facility provides receivables financing across 54 sites, with repayments
including a fixed rate of interest being paid to the Company from an
investment-grade counterparty, Places for People. The facility is the first
deal of an identified future pipeline between the parties.

 

The decarbonisation of the UK's social housing sector, which includes
organisations such as Places for People, is widely acknowledged to be a
critical pillar of the ongoing transition to a low-carbon economy. The housing
sector holds significant potential for reducing carbon emissions. This
transaction therefore not only underscores TENT's commitment to the energy
transition but also illustrates that the strategy of targeting niche,
high-impact sectors has the potential for shareholder value creation.

 

In addition to aiding the UK in meeting its climate pledge, the LEDs also
enhance tenants' living environments, thus aligning with TENT's approach to
both environmental and social impact.

 

Further to this investment, TENT, Boxed and Places for People have identified
additional opportunities through a future pipeline of LED installations and
will invest in further opportunities to roll-out the benefits of efficient
lighting across Places for People's estate.

 

For further information about the Capital Markets Day, which can be attended
in-person in the City or online, please contact Buchanan
at tent@buchanancomms.co.uk.

 

For further information, please contact:

 Triple Point Investment Management LLP   +44 (0) 20 7201 8989

 Jonathan Hick

 Christophe Arnoult

 Chloe Smith

 J.P. Morgan Cazenove (Corporate Broker)  +44 (0) 20 3493 8000

 William Simmonds

 Jérémie Birnbaum

 Akur Limited (Financial Adviser)         +44 (0) 20 7493 3631

 Tom Frost

 Anthony Richardson

 Siobhan Sergeant

 Buchanan (Financial PR)                  +44 (0) 20 7466 5111

 Helen Tarbet

 Henry Wilson

 Hannah Ratcliff

 Verity Parker

 

LEI: 213800UDP142E67X9X28

 

Further information on the Company can be found on its
website: http://www.tpenergytransition.com/
(https://eur03.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.tpenergytransition.com%2F&data=05%7C01%7CRebecca.Lillington%40triplepoint.co.uk%7C5d7dc58447154d71da6108da8a648af1%7Ccde8812e0dbd4dc3b4463655beb81efb%7C0%7C0%7C637974461674664827%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=Qxux6XDdRNrDI2LBUqkiVrj0UyfH30KOouLRCg%2FPxmY%3D&reserved=0)

 

NOTES:

The Company is an investment trust which aims to invest in assets that support
the transition to a lower carbon, more efficient energy system and help the UK
achieve Net Zero.

Since its IPO in October 2020, the Company has made the following investments
and commitments:

·    Harvest and Glasshouse: provision of £21m of senior debt finance to
two established combined heat and power ("CHP") assets, located on the Isle of
Wight, supplying heat, electricity and carbon dioxide to the UK's largest
tomato grower, APS Salads ("APS") - March 2021

·    Spark Steam: provision of £8m of senior debt finance to an
established CHP asset in Teesside supplying APS, as well as a further power
purchase agreement through a private wire arrangement with another food
manufacturer - June 2021

·    Hydroelectric Portfolio (1): acquisition of six operational, Feed in
Tariff ("FiT") accredited, "run of the river" hydroelectric power projects in
Scotland, with total installed capacity of 4.1MW, for an aggregate
consideration of £26.6m (excluding costs) - November 2021

·    Hydroelectric Portfolio (2): acquisition of a further three
operational, FiT accredited, "run of the river" hydroelectric power projects
in Scotland, with total installed capacity of 2.5MW, for an aggregate
consideration of £19.6m (excluding costs) - December 2021

·    BESS Portfolio: commitment to provide a debt facility of £37m to a
subsidiary of Virmati Energy Ltd (trading as "Field"), for the purposes of
building a portfolio of four geographically diverse Battery Energy Storage
System ("BESS") assets in the UK with a total capacity of 110MW - March 2022

·    Energy Efficient Lighting: Funding of c.£2.2m to a lighting
solutions provider to install efficient lighting and controls at a leading
logistics company - March 2023

·    Innova: Provision of a £5m short term development financing facility
to Innova Renewables, building out a portfolio of Solar and BESS assets across
the UK - March 2023

·    Energy Efficient Lighting: Funding of c.£2.3m to Boxed Light
Services Limited to refinance efficient lighting and controls installed at
Places for People Homes Limited - September 2023

 

The Investment Manager is Triple Point Investment Management LLP ("Triple
Point") which is authorised and regulated by the Financial Conduct Authority.
Triple Point manages private, institutional, and public capital, and has a
proven track record of investment in Energy Efficiency and decentralised
energy projects.

Following its IPO on 19 October 2020, the Company was admitted to trading on
the Premium Segment of the Main Market of the London Stock Exchange on 28
October 2022. The Company was also awarded the London Stock Exchange's Green
Economy Mark.

 

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