Triple Point Energy Efficiency Infrastructure Company plc, a closed-ended investment company investing in a diverse portfolio of Energy Efficiency assets in the United Kingdom, is pleased to provide an update on its activities.
Headline terms for its first investment into energy efficient heat distribution assets, represented by the target CHP+ portfolio identified at IPO, are now agreed subject to final documentation and final specific conditions precedent. This is expected to deploy c.£20m of the IPO proceeds. The transaction has been updated since the opportunity was first presented in the IPO prospectus, such that the Company now intends to provide senior debt finance to be secured against the CHP+ assets, rather than acquiring the associated equity interests. The Company considers this to be an attractive investment proposition which, on completion, will generate a return within the target range while providing a greater level of security.
The current wider pipeline includes many of those prospective investments identified at IPO, and a number of high quality investment opportunities are now progressing towards an advanced stage, including a large energy generation and heat distribution project, a portfolio of social housing energy efficiency retrofit assets, and a portfolio of industrial energy efficiency assets.
Each of the contemplated investments aligns with the Company's targeted risk/return profile and objective of delivering secure investments that facilitate the transition to a low carbon economy in accordance with the UK government's overall environmental targets.
The Investment Manager also wishes to announce relevant personnel changes. Charles Herriott will be leaving the Investment Manager on 29 January on good terms, and is being replaced by two senior investment professionals: Edmund Arulanandam and Jonathan Hick. Edmund and Jonathan have considerable relevant experience and will join the Investment Manager on 1 February 2021 and 4 April 2021, respectively.
John Roberts, the Company's Chairman, said:
"We are delighted to be taking a significant step closer to deploying the first of the Company's IPO proceeds into high-quality assets. The proposed investments are aligned with the Company's focus on building a diversified portfolio of energy efficiency assets with a positive environmental impact.
I am confident that Triple Point, the Company's Investment Manager, will continue to progress the execution of our attractive pipeline of investment opportunities in the fast-growing energy efficiency sector . We are deploying the net proceeds from our IPO in line with delivery of the Company's target return of 7-8% and a dividend yield target of 5.5 pence per share in our first full financial year. We continue to target a first interim dividend of 2 pence per share in respect of the period from IPO to 31 March 2021."