TLEI: 254900V23329JCBR9G82

3 November 2022

ThomasLloyd Energy Impact Trust plc

Net Asset Value ("NAV"), Dividend and Operational Update

ThomasLloyd Energy Impact Trust plc ("TLEI" or the "Company"), the renewable energy investment trust providing direct access to sustainable energy infrastructure in fast-growing and emerging economies in Asia, is pleased to announce that its unaudited NAV at 30 September 2022 is US$142.5 million (100.8 cents per share). In addition, the Company is declaring its third quarterly interim dividend of 0.44 cents per ordinary share, for the period from 1 July 2022 to 30 September 2022, that will be paid on 2 December 2022 to shareholders on the register on 18 November 2022.

Net assets

Net assets at 30 September 2022 were US$142.5 million, with a NAV total return since IPO of 3.8%. NAV per share increased to 100.8 cents at 30 September 2022, representing growth of 2.9% since the IPO.

In August 2022, the Company completed the acquisition of 43% of SolarArise for US$32.9 million and, therefore, the seed asset portfolio as described at IPO is fully included in the Investment Portfolio at 30 September 2022. SolarArise owns seven solar power projects situated in five states across India, with a total generating capacity of 434 MW of which 234 MW are operational and 200 MW are construction-ready. On completion of the acquisition, the Company issued approximately 26 million ordinary shares to entities related to the Investment Manager, who together now own 18.4% of the Company.

The Company's Investment Portfolio has increased in value by 3.9% in the period from acquisition, being December 2021 for NISPI and August 2022 for SolarArise, to 30 September 2022. This increase has been driven primarily by the strengthening of Philippine power prices offset by increased discount rates in the Philippines, as well as foreign exchange movements due to the strengthening of the US Dollar. Discount rates applied to the valuation of NISPI increased to 10.5% at 30 September 2022, from 8.0% at acquisition, although the SolarArise discount rates remained unchanged at 11.2%.

Excluding the non-cash impact of foreign exchange movements since acquisition, the Investment Portfolio on a constant currency basis would have increased by 13.3%. On a constant currency basis at 30 September 2022, NAV per share would have been 104.6 cents and NAV total return would have been 8.1% in comparison to IPO.

Committed acquisitions and pipeline

As announced on 2 November 2022, the Company has entered into a new partnership with a Vietnamese entity, Solar Electric Vietnam.  It has entered into an agreement to acquire Viet Solar System Company Limited, a privately owned company which holds 6 MW of rooftop solar assets for US$4.6 million.

A further US$25.4 million is expected to be deployed on additional opportunities in Vietnam, which have predominantly been identified, and include a portfolio of another 19 MW of rooftop solar assets currently under exclusivity to the Company. Once this initial facility has been fully utilised, more than 86% of net IPO proceeds are expected to have been deployed. 

Dividend

The Board has declared the third quarterly interim dividend of 0.44 cents per ordinary share, for the period from 1 July 2022 to 30 September 2022.

September 2022 Fact Sheet

The Company's September 2022 Fact Sheet will shortly be available on the Company's website:

http://www.tlenergyimpact.com.

Footnotes

¹ NAV total return per share represents the total return to shareholders, being the combined effect of the rise or fall in the NAV per share over the relevant period and assumes dividends paid in the relevant period are reinvested immediately in the Company at the prevailing NAV per share, in comparison to the NAV per share at the IPO.

² Represents the sum of each power plant's cumulative renewable energy generation during the reporting period. The aggregate renewable energy generation presented represents TLEI's proportion, based on economic interest owned or committed to be owned from the date of commitment, in each investment for the year-to-date period. Therefore, it includes 40% of the electricity generated by NISPI's three solar plants and 43% of SolarArise's six operating solar plants for the nine-month period ended 30 September 2022 and 57% of SolarArise's renewable energy generation for the period from commitment on 20 June 2022 to 30 September 2022.

³ Represents the cumulative sum of emissions avoided by each power plant during the reporting period. Emissions avoided is calculated by applying a relevant local or national grid operating margin grid emission factor to the renewable energy generated by each power plant as defined above. The relevant factor in the Philippines is 0.7122 extracted from the Luzon-Visayas Grid 2015-2017 as published by the Department of Energy in the Philippines. The relevant factor in India is 0.95 extracted from India Grid FY20-21 as published by the Central Electricity Authority of India.

⁴ Represents the cumulative sum of people provided with renewable energy by each power plant during the reporting period. People provided with electricity is calculated by applying the average per capita electricity consumption in the applicable country, apportioned for the period presented, to the renewable energy generated. The relevant per capita consumption rate in the Philippines is 897 KWh per annum as derived from the 2020 consumption rate as published by Statista on 1 June 2021. The relevant factor in India is 1,161 KWh per annum derived from the relevant quarterly consumption rate as published by the Central Electricity Authority of India.

⁵ Represents full time equivalent employees at the end of the reporting period based on hours worked of both direct employees and dedicated contractors. The full time jobs presented represents TLEI's proportion, based on economic interest owned or committed to be owned in each investment at the end of the reporting period. Therefore, at 30 September 2022 it includes 40% of the installed capacity of NISPI's three solar plants and 100% of SolarArise's six operating solar plants.

Enquiries:

About ThomasLloyd Energy Impact Trust plc

ThomasLloyd Energy Impact Trust plc listed on the premium segment of the London Stock Exchange in December 2021 and was awarded the London Stock Exchange's Green Economy Mark upon admission.

In 2021, ThomasLloyd Group participated in the  Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) competition, which engaged financial institutions in a search for the best sustainable infrastructure proposals that can list either on the London Stock Exchange or local exchanges. ThomasLloyd Group was the first fund manager to complete this process successfully and received US$32.3 million in investment from the UK government into the Company.

The Company has a 'Triple Return' investment objective which consists of:

·      providing Shareholders with attractive dividend growth and prospects for long-term capital appreciation (the financial return);

·      protecting natural resources and the environment (the environmental return); and

·      delivering economic and social progress, helping build resilient communities and supporting purposeful activity (the social return).

The Company seeks to achieve its investment objective by investing directly in a diversified portfolio of sustainable energy infrastructure assets in the fast-growing and emerging economies in Asia. The Company invests in unlisted sustainable energy infrastructure assets in the areas of renewable energy power generation, transmission infrastructure, energy storage and sustainable fuel production, including utilising different technologies to reduce revenue variability.

The Company aims to generate additional value for its investors through focusing its investments on construction-ready or in-construction projects. The Company only invests in such pre-operational assets where: (i) an offtake agreement has been entered into; (ii) the land on which the project is situated is identified or contractually secured where appropriate; and (iii) all relevant permits have been granted. Offtake agreements will typically benefit from long-term fixed-price power purchase agreements, capacity contracts or other similar revenue contracts with creditworthy (primarily investment grade) private and public sector buyers.

As is the case for all ThomasLloyd funds, the Company is expected to qualify as an Article 9 fund under the EU Sustainable Finance Disclosure Regulation (SFDR).

Further information on the Company can be found on its website at http://www.tlenergyimpact.com.

About the Investment Manager

The Investment Manager is a wholly-owned subsidiary of ThomasLloyd Group ("ThomasLloyd" or the "Group"). Founded in 2003, the Group is a leading impact investor and provider of climate financing.  ThomasLloyd is a pure play impact investor and aims to apply a robust, socially and environmentally responsible investment approach that is geared towards reducing carbon emissions and improving economic prospects, while reducing investment risk through diversification across countries, sectors and technologies

Over the last decade, ThomasLloyd has deployed over US$1 billion across 16 projects in renewable energy power generation, transmission and sustainable fuel production with a total capacity in excess of 700 MW.

Since 2013, ThomasLloyd has been measuring and reporting on the impact of its investments, creating an empirical database showing the positive impact of their investments in sustainable energy infrastructure in high growth and emerging markets in Asia.