Energy fund debuts on London market

Shares in London’s first listed energy efficiency fund began trading on Tuesday as the firm raised £100 million.

Chaired by Tony Roper, who used to run infrastructure fund HICL, SDCL Energy Efficiency Income Trust (SEEIT) is hoping to capture the move towards carbon footprint reduction and decentralised energy generation.

Money raised from the initial public offering will go towards acquiring a seed portfolio, which will invest in projects such as the installation of LED lighting in Santander branches, a cooling and heating power unit at St Bart’s hospital in London and biomass boilers at Moy Park poultry farms in Lincolnshire.

Shares were issued at 100p each and were trading broadly flat on their debut.

SEEIT founder and chief executive Jonathan Maxwell said: “We are delighted to be listing SEEIT as the first investment company on the main market of the London Stock Exchange to focus exclusively on energy efficiency infrastructure.

“It is a testament to the proposition that we have been able to attract high-quality investor support in challenging markets. We look forward to delivering a stable and growing income stream from our seed portfolio and from attractive acquisition opportunities.”

The firm had been targeting £150 million through the float.

SEEIT is targeting a total return of 7% to 8% per year, with a targeted initial dividend yield of 5%, rising to 5.5% in the year ending March 2021.