LONDON, UK: SDCL Energy Efficiency Income Trust (SEEIT) has accomplished the acquisition of an 80% fairness curiosity in a high-efficiency and operational biomass cogeneration plant, Sociedade de Iniciativa e Aproveitamentos Florestais – Energia, S.A., in Mangualde, Portugal from Capwatt S.A, for roughly €22 million.
Furthermore, SEEIT has delivered an additional €15 million to SIAF to half pay down its existing project finance inexperienced bond facility.
SIAF generates warmth and energy from sustainably sourced biomass. It provides critical onsite warmth to an industrial facility manufacturing medium-density fibreboard (“MDF”) owned by Sonae Arauco PT (“SAPT”) on a take-or-pay foundation and it generates electrical energy which advantages from the Portuguese Feed-in-Tariff to the grid. The Project is anticipated to profit from at least a additional 23 years of stable, inflation linked, contracted cashflows with no demand risk, offering good visibility of returns for SEEIT.
The acquisition has been funded from existing money reserves. The remaining balance of SIAF’s project finance inexperienced bond facility will be equal to roughly €20 million.
In addition to the acquisition of the Project, SEEIT and Capwatt have signed a Heads of Terms to focus on the joint development and acquisition of energy effectivity projects throughout Iberia.
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