Aquila Energy Efficiency Trust to float in London with £150mln IPO

Aquila Energy Efficiency Trust PLC is to float in London with an IPO aiming to raise £150mln. The company seeks to invest in diversified portfolio of energy efficiency investments, where opportunities aim to reduce primary energy consumption, reduce CO2 emissions and in many cases deliver economic savings and positive externalities such as improved air quality. It won’t invest in any fossil fuel extraction or mineral extraction projects. Chairperson Miriam Greenwood highlighted that the IPO offers a highly differentiated investment opportunity. “The company will allow investors to access a leading European investment manager with considerable experience in the sector and a diverse pipeline focused on proven technologies across the European Economic Area, the UK, and Switzerland,” Greenwood said. She added: “The company is intended to assist corporates in stepping forward to play their part in addressing the major challenges facing the planet from climate change, supporting important and ambitious national targets across the region to reduce CO2 emissions." The company is targeting a total shareholder return of 7.5% to 9.5% per year in the medium term, and its dividend strategy aims to pay 3.5p per share in 2022 and 5p per share for 2023. The investment scope spans energy efficiency business including but not limited to ‘energy efficient lighting, smart building and metering services, cogeneration plants, heating, ventilation and air conditioning (HVAC) systems, efficient boilers, solar photo voltaic plants batteries, other energy storage solutions, electric vehicles and associated charging infrastructure.’ Its focus will be on investments with values of up to €10mln though larger transaction are also possible. Already, the company has identified a pipeline of opportunities to acquire €210mln (£180mln) of energy efficiency assets plus a further €300mln of possible acquisitions that could become available in a years’ time. The investment vehicle is backed by Aquila Capital which is independently owned and operated with approximately €12.5bn of assets under management or administration, with 450 employees across fourteen offices locations in Europe and Asia. It is anticipated that the Aquila Energy Efficiency Trust PLC will qualify for London Stock Exchange's Green Economy Mark. The ribbon recognises companies that derive 50% or more of their total annual revenue from products and services that contribute to the global green economy. Stockbroker Peel Hunt is acting as sole sponsor to the IPO.