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RNS Number : 4994A Asian Energy Impact Trust PLC 22 January 2024
LEI: 254900V23329JCBR9G82
22 January 2024
Asian Energy Impact Trust plc
(the "Company" or "AEIT")
UNAUDITED INTERIM RESULTS TO 30 JUNE 2023
Asian Energy Impact Trust plc, the renewable energy investment trust providing
direct access to sustainable energy infrastructure in fast-growing and
emerging economies in Asia, announces its unaudited results for the period
from 1 January 2023 to 30 June 2023 ("2023 Interim Report").
FINANCIAL HIGHLIGHTS
As at As at
31 December 2022
30 June 2023 (unaudited)
(audited)
GAAP Measures
Net assets - US$ million 89.9 86.6
Fair value of investment portfolio - US$ million 23.9 11.5
Cash held at AEIT(1) - US$ million 70.0 115.8
Dividends declared in respect of the period - cents per share 0.9 2.5
Alternative Performance Measures
NAV per share - cents 51.2 49.3
NAV total return per share -46.8 -49.2
Gearing (as a % of Adjusted GAV) 54.0% 27.0%
IMPACT HIGHLIGHTS
As at As at
31 December 2022
30 June 2023 (unaudited) (audited)
Alternative Performance Measures
Total installed capacity 271MW 132MW
Renewable energy generated in the period 210,974 MWh 85,199 MWh
Estimated tonnes of carbon avoided from generated electricity 168,825 tCO(2)e 62,770 tCO(2)e
Jobs supported (full time equivalents) 315 148
key points
· Net assets at 30 June 2023 of US$89.9 million (NAV of 51.2 cents
per share), underpinned by a robust independent valuation process. Since IPO,
the NAV per share decreased from 98.0 cents to 46.8 cents, principally as a
result of a very substantial write down in the portfolio valuation during the
period ended 31 December 2022.
· As at 30 June 2023, the Company had invested US$99.9 million,
equivalent to 55% of total capital raised. The Board has suspended
acquisitions of, or commitments to, new investments pending the outcome of the
Board's strategic review of the options for the Company's future, which is
expected to be completed before the end of Q1 2024.
· As at 30 June 2023, the Company had cash balances, including
cash held in its intermediate holding company, of US$70.0 million. During the
six months ended 31 December 2023 the Company: funded the construction of the
200MW solar project that forms part of the Rewa Ultra Mega Solar Park (the
"RUMS project"), via a US$20 million loan; paid post period dividends of
US$2.3 million; and paid recurring and exceptional running costs of the
Company. As at 31 December 2023, the Company had cash reserves of US$41.4
million and its wholly owned UK subsidiary, AEIT Holdings Limited, had cash
reserves of US$1.7 million.
· As at 30 June 2023, gearing in AEIT's investment portfolio
represented 54.0% of the Adjusted GAV. As at 30 September 2023, following the
decision to proceed with the construction of the RUMS project, gearing as a
percentage of Adjusted GAV increased to 54.6%.
· The future of the Company relies heavily on the outcome of the
current strategic review of the options for the future of the Company. While
the Directors have a reasonable expectation that the Company has adequate
resources to continue in operational existence for the foreseeable future and
the going concern basis of accounting has been adopted in preparing the 2023
Interim Report, the result of the strategic review is not known at this time
and potential outcomes could include a managed wind down of the Company. As a
result, there remains a material uncertainty surrounding the Company's future
and in respect of going concern.
· The Company has also published its 2022 Annual Report today.
Details are available through the published annual results RNS and on the
Company's website, www.asianenergyimpact.com
(https://url.avanan.click/v2/___http:/www.asianenergyimpact.com___.YXAxZTpzaG9yZWNhcDphOm86Mjc3YWRiNjllOGU4MmM0MzgwMDBmYzRkOTRjMTYzMjc6NjpkYjBjOjc3Y2IwN2Y2Yjc1OWRmZjJkMmIyMGZmZjVmOTE3ZjJiMjQ3YWNmYzc4MjQ1ZWVkNTRjZTNiYmU0N2JlMWIwMzY6cDpU)
.
Q2 2023 FACTSHEET
The Company's factsheet for the quarter ended 30 June 2023 will be available
shortly on its website, www.asianenergyimpact.com
(https://url.avanan.click/v2/___http:/www.asianenergyimpact.com___.YXAxZTpzaG9yZWNhcDphOm86Mjc3YWRiNjllOGU4MmM0MzgwMDBmYzRkOTRjMTYzMjc6NjpkYjBjOjc3Y2IwN2Y2Yjc1OWRmZjJkMmIyMGZmZjVmOTE3ZjJiMjQ3YWNmYzc4MjQ1ZWVkNTRjZTNiYmU0N2JlMWIwMzY6cDpU)
.
Enquiries
Asian Energy Impact Trust plc Tel: +44 (0)20 3757 1892
Sue Inglis, Chair
Octopus Energy Generation (Transitional Investment Manager) Tel: +44 (0)20 4530 8369
Press Office aeit@octopusenergygeneration.com
Shore Capital (Joint Corporate Broker) Tel: +44 (0)20 7408 4050
Robert Finlay / Rose Ramsden / Anita Ghanekar (Corporate)
Adam Gill / Matthew Kinkead / William Sanderson (Sales)
Fiona Conroy (Corporate Broking)
Peel Hunt LLP (Joint Corporate Broker) Tel: +44 (0)20 7418 8900
Luke Simpson / Huw Jeremy (Investment Banking Division)
Alex Howe / Richard Harris / Michael Bateman / Ed Welsby (Sales)
Smith Square Partners LLP (Financial Advisor) Tel: +44 (0)20 3696 7260
John Craven / Douglas Gilmour
Camarco (PR Advisor) Tel: +44 (0)20 3757 4982
Louise Dolan / Eddie Livingstone-Learmonth / Phoebe Pugh asianenergyimpacttrust@camarco.co.uk
(mailto:asianenergyimpacttrust@camarco.co.uk)
Notes:
1. Including cash held in its intermediate holding company, AEIT Holdings
Limited, of $1.7 million as at 30 June 2023 (As at 31 December 2022: $Nil).
Overview
About the Company
Asian Energy Impact Trust plc ("AEIT" or the "Company", formerly ThomasLloyd
Energy Impact Trust plc) is a closed‑ended investment company incorporated
in England and Wales.
The Company's ordinary shares were admitted to the premium listing segment of
the Official List of the Financial Conduct Authority and to trading on the
premium listing segment of the main market of the London Stock Exchange on
14 December 2021.
The Company has a triple return investment objective which consists of:
(i) providing shareholders with attractive dividend growth and prospects
for long-term capital appreciation (the financial return);
(ii) protecting natural resources and the environment (the environmental
return); and
(iii) 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 in a
diversified portfolio of unlisted sustainable energy infrastructure assets in
the areas of renewable energy power generation, transmission infrastructure,
energy storage and sustainable fuel production ("Sustainable Energy
Infrastructure Assets"), with a geographic focus on fast‑growing and
emerging economies in Asia.
The Board is undertaking a strategic review of the options for the Company's
future, which is expected to be concluded by the end of the first quarter of
2024. At the date of this Interim Report, based on the information currently
available, the most likely outcomes of the strategic review are a proposal for
either the relaunch of the Company, potentially with a new investment
objective, investment policy, target returns and/or Investment Manager but
maintaining the impact-led, Asian focus, or a managed wind-down and subsequent
winding-up of the Company. The outcome of the strategic review will be subject
to shareholder approval.
This Interim Report and the Company's website may contain certain
'forward-looking statements' with respect to the Company's financial
condition, results of its operations and business, and certain plans,
strategies, objectives, goals and expectations with respect to these items and
the markets in which the Company invests. Forward-looking statements are
sometimes, but not always, identified by their use of a date in the future or
such words as 'aims', 'anticipates', 'believes', 'estimates', 'expects',
'intends', 'targets', 'objective', 'could', 'may', 'should', 'will' or 'would'
or, in each case, their negative or other variations or comparable
terminology. Forward-looking statements are not guarantees of future
performance. By their very nature forward-looking statements are inherently
unpredictable, speculative and involve risk and uncertainty because they
relate to events and depend on circumstances that will occur in the future.
Many of these assumptions, risks and uncertainties relate to factors that are
beyond the Company's ability to control or estimate precisely. There are a
number of such factors that could cause the Company's actual investment
performance, results of operations, financial condition, liquidity, dividend
policy and financing strategy to differ materially from those expressed or
implied by these forward-looking statements. These factors include, but are
not limited to: changes in the economies and markets in which the Company
operates; changes in the legal, regulatory and competition frameworks in which
the Company operates; changes in the markets from which the Company raises
finance; the impact of legal or other proceedings against or which affect the
Company; changes in accounting practices and interpretation of accounting
standards under IFRS; and changes in power prices and interest, exchange and
discount rates. Any forward-looking statements made in this Interim Report or
the Company's website, or made subsequently, which are attributable to the
Company, or persons acting on its behalf (including the Investment Manager),
are expressly qualified in their entirety by the factors referred to above.
Each forward-looking statement speaks only as of the date it is made. Except
as required by its legal or statutory obligations, the Company does not intend
to update any forward-looking statements. Nothing in this Interim Report or
the Company's website should be construed as a profit forecast or an
invitation to deal in the securities of the Company.
Performance Highlights
For the six months ended 30 June 2023 (unaudited)
Financial
Capital raised to date Net asset value ("NAV") Gross asset value ("GAV")(1 2)
US$180.9m US$89.9m US$92.1m
(December 2022: US$180.9m) (December 2022: US$86.6m) (December 2022: US$127.3m)
NAV per share(1 3) Dividend per share(8) NAV total return per share since IPO(1)
51.1 cents 0.88 cents
(December 2022: 49.3 cents) (Period to 30 June 2022: 0.44 cents) (46.8)%
(December 2022: (49.2)%)
Cash held at AEIT Fair value of investment portfolio Adjusted gross asset value ("Adjusted GAV")(1 4)
US$68.2m US$23.9m
(December 2022: US$115.8m) (December 2022: US$11.5m) US$200.3m
(December 2022: US$173.3m)
Market capitalisation Net operational asset value(1 5) Gearing ratio(1 6)
Shares suspended US$42.7m 54%
(December 2022: US$207.3m) (December 2022: US$23.5m) (December 2022: 27%)
Impact(7)
Total installed capacity Renewable energy generated in the period Estimated tonnes of carbon avoided from generated electricity
132 MW 210,974 MWh 168,825 tCO(2)e
Jobs supported (full time equivalents)
315
(1 ) An alternative performance measure ("APM"). Definitions
of APMs together with how these measures have been calculated can be found in
the Interim Report.
(2 ) GAV is the value of all assets of the Company, being the
sum of all investments held in the portfolio together with any cash and cash
equivalents.
(3 ) Calculated on the basis of 175,684,705 ordinary shares
in issue.
(4 ) Adjusted GAV is GAV plus proportionate share of asset
level debt.
(5 ) The value of the Company's operational portfolio
excluding construction assets.
(6 ) Group debt and non-Group investment debt (calculated on
a proportionate basis) as a % of Adjusted GAV.
(7 ) These metrics have been proportioned to account for
AEIT's share of the SolarArise, NISPI and VSS assets during the reporting
period.
(8 ) Total dividends declared in relation to the period from
1 January 2023 to 30 June 2023.
Investment Portfolio
As at 30 June 2023
Plant or site Technology Country Revenue type Total Total Average Economic
renewable renewable remaining ownership
energy energy life of asset 30 June 2023
generating generating modelled
capacity on a capacity based on (years)
100% basis economic share
(MWp) (MWp)
NISPI 80 32
Islasol IA Solar Philippines Wholesale electricity market 18 7 18.0 40%
Islasol IB Solar Philippines Wholesale electricity market 14 6 18.0 40%
Islasol II Solar Philippines Wholesale electricity market 48 19 18.0 40%
SolarArise 433 433
Telangana I Solar India 25 year fixed price PPA 12 12 18.0 100%
Telangana II Solar India 25 year fixed price PPA 12 12 18.0 100%
Karnataka I Solar India 25 year fixed price PPA 40 40 19.0 100%
Karnataka II Solar India 25 year fixed price PPA 27 27 19.5 100%
Maharashtra Solar India 25 year fixed price PPA 67 67 21.0 100%
Uttar Pradesh Solar India 25 year fixed price PPA 75 75 22.5 100%
Total installed generating capacity 233 233
Madhya Pradesh(9) Solar India 25 year fixed price PPA 200 200 n/a 100%
Total 'ready to build'generating capacity 200 200
VSS 6 6
Mo Cay Solar Vietnam 20 year PPA 2 2 17.5 99.8%
Hoang Thong Solar Vietnam 20 year PPA 4 4 17.5 99.8%
Total generating capacity including committed assets 319 271
Total 'ready to build' capacity 200 200
(9) A construction-ready project (the "RUMS project"). Post period
end, a decision has been taken to proceed with the project and it is expected
to commission before 31 March 2024.
Chair's Statement
With thanks to shareholders for their patience, I present the Interim Report
for the Asian Energy Impact Trust plc (formerly ThomasLloyd Energy Impact
Trust plc) for the period from 1 January 2023 to 30 June 2023.
Our Annual Report for the period ended 31 December 2022 is being published
simultaneously with this Interim Report. The Annual Report lays out in
detail the challenges the Company faced during 2023, including the events
leading up to and following the temporary share suspension.
The unaudited NAV of the Company as at 30 September 2023 was published on 13
December 2023.
This Interim Report provides the first step forward from the baseline of 31
December 2022. In light of the significant delay in the publishing this
Interim Report, events up to the signing date are also presented and
considered as post period events.
Impact
The Company was launched in response to investor interest in an impact led
investment trust and is focused solely on fast-growing emerging economies in
Asia where greenhouse gas emissions ("GHG") continue to grow rapidly. At IPO,
the Company was the first, and it continues to be the only, London-listed
renewable energy investment company focused on Asia, being the region with the
most urgent need for investment in sustainable energy infrastructure and
capital invested can have the greatest impact.
Our investment portfolio is constructed to address the climate change
mitigation priorities set out in our target countries' Nationally Determined
Contributions under the Paris Agreement on Climate Change by avoiding GHG
emissions. Our investments also support those countries efforts to achieve the
United Nations Sustainable Development Goals ("UN SDGs"), while having a
positive impact in the communities around our assets. During the period the
Company generated 211k MWh of green energy, enough for over 223,000 people,
and avoided 169k tCO(2) emissions.
The Company is classified as an Article 9 fund under the EU Sustainable
Finance Disclosure Regulation ("SFDR") and will make a minimum of 95%(10)
sustainable investments with an environmental objective under the EU Taxonomy.
I am pleased to report that 100% of investments made to date are aligned with
the EU Taxonomy.
(10 ) Excludes cash not yet invested.
Investment activity
SolarArise is a 433 MW Indian investment platform with six operating solar
plants totalling 233 MW and one construction‑ready 200MW solar plant. The
43% acquisition of SolarArise was completed in August 2022 for a total
consideration of US$32.9m. The remaining 57% of SolarArise was completed for a
cash consideration of US$38.5 million on 13 January 2023 and the Company now
owns 100% of SolarArise.
On 1 November 2022, the Company committed to acquire Viet Solar System Company
Limited ("VSS"), a privately-owned company which holds 6.12 MW of rooftop
solar assets, for US$3.1 million. This acquisition completed on 31 May 2023
and represents a 99.8% interest in VSS.
No further acquisitions have been made post period end.
Portfolio performance
During the six-month period ended 30 June 2023, the investment portfolio's
electricity generation was 210,974 MWh, 1.6% below budget due to lower than
expected irradiation in the period.
During the period, in May 2022, the construction of our 200 MW project in
Madhya Pradesh (the "RMS project"), which was originally scheduled for
completion in the first half of 2023, was formally postponed due to a delay in
infrastructure construction directed by the solar park owner and deteriorating
project economics. Post period end, in October 2023, the Board revisited its
decision, taken earlier in the year, in light of an improved position
presented by the Former Manager, reflecting a substantial decline in solar
module prices in May and June 2023, and the Board has since decided to proceed
with the project. As this investment could have resulted in the portfolio
breaching the single country limit in the Company's investment policy (50% of
GAV), a change to the investment policy was proposed and approved by
shareholders in November 2023. Although risks remain due to the size and tight
timelines of the project, the RUMS project is expected to be commissioned
before 31 March 2024, and, as a new source of renewable energy, will make a
significant contribution towards achieving our impact objectives.
Results
The NAV of the Company as at 30 June 2023 was US$89.9 million. Since 31
December 2022, the NAV per share increased from 49.3 cents to 51.1 cents.
Further detail on the valuation movements can be found in the Interim Report.
Post period end, the NAV of the Company as at 30 September has been published
at US$88.5 million, 50.4 cents per share.
The Company had a cash balance of US$68.2 million at the period end. The
Company had no gearing and gearing on a 'look-through' basis to its underlying
investments was 54% of Adjusted GAV.
The Company's net income for the period was US$7.3 million, giving rise to a
profit for the period of US$5.4 million. This was mainly driven by an increase
in the value of the RUMS project by US$9 million, offset by a reduction in the
value of NISPI by US$1.9 million.
Dividends totalling 0.88 cents per share have been paid in respect of the
period 1 January 2023 to 30 June 2023, of which the payments for were split
equally on 19 July 2023 and 11 September 2023. All dividends were paid out of
the Company's distributable capital reserves. EBITDA from the Company's
operational assets over the period, excluding costs within the SolarArise
holding company, was US$10.8 million(11) compared to the aggregate cost of
dividends paid to shareholders in respect of the period of US$1.5 million.
(11 ) EBITDA generated from 1 January 2023 for NISPI and
SolarArise and date of ownership (31 May 2023) for VSS, pro rated for economic
ownership.
Challenges faced by the Company
As well documented through our regular updates to shareholders and in our 31
December 2022 Annual Report and Accounts, 2023 presented significant
challenges. As a result, the Board terminated the existing Investment Manager
and appointed a transitional Investment Manager, Octopus Energy Generation, on
1 November 2023.
The financial results for 2022 were disappointing for the Board and for
shareholders, but set a new baseline from which to move forward. This Interim
Report is the first opportunity for the Company to move forward on a more
level footing and the results are more encouraging and in line with revised
expectations.
We are awaiting the final reports on full updated technical due diligence
across all assets in the portfolio and we expect the report of the outcomes by
the end of January 2024. This will enable the Company to confirm the
generation assumption haircuts already taken that estimate the expected
outcomes.
Ultimately, the single biggest challenge faced by the Company now is scale.
The significant reduction in the NAV presents an uncertain future on the
long-term viability of the Company and is a key focus for the Board in
determining the future options for the Company.
Status of the strategic review
The strategic review of the options for the Company's future is reaching an
advanced stage. At the date of this Interim Report, based on the information
currently available, the most likely outcome of the strategic review remains a
proposal for either the relaunch of the Company (potentially with a new
investment objective, investment policy, target returns and/ or Investment
Manager but maintaining the impact-led, Asian focus) or a managed wind-down.
Having analysed with our advisers the initial proposals received for a
relaunch of the Company, the Board will be inviting a shorter list of
potential investment managers to submit final proposals. Any proposal to
relaunch the Company would need to offer a compelling investment proposition
for both existing and prospective investors to enable the Company to scale up
its size significantly over time as, at its current size, the Company will not
have a viable long-term future.
Any managed wind-down proposal would seek to achieve an optimal balance
between maximising shareholder value and timely return of cash to
shareholders, before a formal winding up once substantially all of the
Company's assets have been realised.
The Board will continue to consult shareholders at appropriate stages of the
strategic review and expects to conclude the strategic review by the end of
the first quarter of 2024. The Board does not intend to declare a dividend in
respect of the quarter ended 31 December 2023 prior to completion of the
strategic review.
Outlook
Despite the well-documented challenges that the Company has faced over many
months, as explained in more detail in the 'Outlook' in my statement in the
2022 Annual Report which is being published simultaneously with this Interim
Report, my Board colleagues and I continue to firmly believe in the investment
opportunity to deliver an impact-led renewable energy investment strategy in
the fast growing and emerging markets in Asia and that the Company's
investment philosophy remains sound.
Notwithstanding the investment opportunity, the future of the Company will be
determined by the outcome of the strategic review. In particular, a relaunch
would rely heavily on shareholders continuing to support that option and their
willingness to participate, alongside new investors, in future fundraising
growth, without which the Company would remain sub-scale. Having voted against
the resolution to wind up the Company at the general meeting held on 19
December 2023, shareholders have provided the Board with the additional time
needed to complete the strategic review, which we will continue to work
tirelessly to conclude at the earliest opportunity.
Irrespective of the outcome of the strategic review, a key short-term priority
is to look for ways to recover value from existing investments and there are
opportunities for optimising value through more efficient structuring and
asset level improvement initiatives.
Sue Inglis
Chair
22 January 2024
Interim Performance Updates
Timeline of Events
Date Event
13 January 2023 Completion of the acquisition of the remaining 57% economic interest in
SolarArise.
25 April 2023 Temporary share suspension at the Company's request due to a material
uncertainty regarding the fair value of its assets and liabilities, in
particular with regard to the RUMS project.
31 May 2023 Decision not to proceed with construction of the RUMS project, predominantly
due to high solar panel prices. Completion of the acquisition of the 99.8%
economic interest in VSS and its two solar power projects.
30 June 2023 Annual General Meeting held.
Alongside the standard annual resolutions to re-elect the Board which were
passed, a Continuation Resolution was proposed as 75% of the net IPO proceeds
had not been deployed within 12 months of admission to trading.
Material events post period end
1 August 2023 The Company's only development project (the 'TT8 Project'), a 150 MW DC solar
PV project held by a special purpose vehicle of SolarArise, signed a power
purchase agreement with Maharashtra State Electricity Distribution Company
Limited.
12 July 2023 Company announced that the final portfolio valuation as at 31 December 2022
could reflect a material downward movement that would be in addition to the
costs written off and potential abandonment liabilities associated with not
proceeding with the RUMS project.
15 August 2023 Company announced receipt of new information under protections of its
whistleblowing policy revealing that ThomasLloyd Global Asset Management
(Americas) LLC was aware of material information relating to the RUMS project
by August 2022 and, therefore, it appeared that key information had been
withheld from the Board, and misleading information given to it, over a
protracted period of time.
24 August 2023 Shareholders representing 58% of the votes cast (and a majority of the issued
share capital) voted against the Continuation Resolutions, in line with the
Board's recommendation. As a result, the Board was required to bring forward
proposals for the reconstruction, reorganisation or winding-up of the Company
for shareholder approval within four months.
Strategic review of options for the Company's future commenced.
15 September 2023 Company served notice terminating ThomasLloyd Global Asset Management
(Americas) LLC's appointment as Investment Manager with effect from 31 October
2023.
25 September 2023 Shareholders representing approximately 54% of the Company's total issued
share capital supported the current Board and the resolutions to replace the
current Board were not passed.
11 October 2023 Decision to proceed with the RUMS project due to it being the least value
destructive option for shareholders.
27 October 2023 Company changed its name to Asian Energy Impact Trust plc.
31 October 2023 Shareholders representing 91% of the issued share capital voted in favour of
changes to the Company's investment policy (to avoid any potential breach of
the single country limit as a consequence of proceeding with the RUMS project
and make clarificatory changes to the gearing policy), in line with the
Board's recommendation.
Termination of the Former Investment Manager's appointment.
1 November 2023 Octopus Energy Generation appointed as Transitional Investment Manager.
AEIT launched a new corporate website.
13 December 2023 Unaudited NAV as at 30 September 2023 announced of US$88.5 million (50.4 cents
per share).
Company announced that moving forward with the development of the TT8 Project
may not be the best option for the Company.
19 December 2023 Shareholders representing 83% of the votes cast (and 69% of the issued share
capital) voted against a resolution to wind up the Company, in line with the
Board's recommendation.
Company Developments
The material uncertainty surrounding the investment portfolio valuation as at
31 December 2022 and the subsequent events that followed throughout 2023,
including the temporary share suspension effective from 7.30 am on 25 April
2023 have had adverse consequences for the Company and its shareholders. A
summary of the key events is set out below.
Temporary share suspension
On 25 April 2023 the Company announced a temporary suspension in the listing
of, and trading in, the Company's shares (the "temporary share suspension").
The temporary share suspension was at the Company's request due to a material
uncertainty regarding the fair value of its assets and liabilities, in
particular with regard to the 200 MW construction-ready RUMS project, which
was acquired as part of the SolarArise portfolio. Further work was required to
assess the quantum of the liabilities and commercial viability of the project.
Due to this, the Company was unable to finalise the accounts within four
months after the accounting period end date, as required by the FCA's
Disclosure Guidance and Transparency Rules.
Decision not to proceed with the RUMS project
Following the temporary share suspension, the Board appointed independent
advisors to undertake detailed reviews of the liabilities associated with
abandoning the RUMS project and the Company's options for the project
(including proceeding with constructing it or abandoning it). In parallel, the
Former Investment Manager re-evaluated the options for the RUMS project,
including the funding requirement in the event of proceeding with
construction. Based on the reviews undertaken at that time, and the
information provided to the Board on 31 May 2023 by the Former Investment
Manager, the Board concluded that it would not be in the interests of
shareholders to proceed with the construction of the RUMS project. As well as
being commercially unviable, predominantly due to the high solar panel prices
at that time, proceeding would breach the Company's investment policy
restrictions.
Re-evaluation of 31 December 2022 portfolio valuation proposed by the Former
Investment Manager
Due to the ongoing material uncertainties regarding the Company's financial
position and in support of progressing the audit and annual report and
accounts for the period ended 31 December 2022, the Board also appointed, in
May 2023, PricewaterhouseCoopers LLP ("PwC") to undertake a detailed review of
the key assumptions included in the financial models and the valuation
methodology of the operational assets within the portfolio, namely the
SolarArise portfolio and NISPI, as at 31 December 2022 proposed by the Former
Investment Manager. On 12 July 2023, the Board announced it had received a
draft report from PwC and that, based on that draft, it anticipated that the
final portfolio valuation as at 31 December 2022 could reflect a material
downward movement that would be in addition to the costs written off and
potential abandonment liabilities associated with not proceeding with the RUMS
project.
2023 Annual General Meeting
At the Annual General Meeting held on 30 June 2023, alongside the standard
annual resolutions to re-elect the Board which were passed, Continuation
Resolutions were proposed as 75% of the net IPO proceeds had not been deployed
within 12 months of admission to trading. If the Continuation Resolutions did
not pass, the Directors would be required by the Company's Articles of
Association to put forward proposals for the reconstruction, reorganisation or
winding up of the Company to shareholders for their approval within four
months of the date of the meeting at which the Continuation Resolutions were
proposed.
Given the uncertainty of the Company's financial situation, the Board
recommended that shareholders abstain from voting on the Continuation
Resolutions and adjourned the AGM ahead of the shareholder vote on the
Continuation Resolutions.
General meetings requisitioned by entities and funds affiliated with the
Former Investment Manager
On 11 July 2023, the Company received a notice from certain entities and funds
affiliated with the Former Investment Manager (the "Requisitioners"), which
held 14.8% of the Company's issued share capital, requisitioning a general
meeting of the Company's shareholders to vote on, amongst other things, the
Continuation Resolutions.
On 31 July 2023 in the notices for the requisitioned general meeting and
adjourned Annual General Meeting (the "August Meetings"), the Board
recommended shareholders to vote against the Continuation Resolutions to be
proposed at those meetings as shareholders would be unable to form a
considered view of the Company as, at that time, (i) its valuation was
uncertain, (ii) its principal construction asset was believed to be
economically unviable and the non-completion liabilities were expected to be
substantial, (iii) the audit of its financial statements for the period ended
31 December 2022 and associated annual report and accounts could not be
completed, (iv) its shares were suspended from trading and (v) there was no
clear strategy for the future of the Company.
Prior to the August Meetings a second notice from the Requisitioners was
received by the Company requisitioning a further general meeting to consider
ordinary resolutions that the current Board be removed from office as
directors of the Company and replaced with new directors nominated by the
Requisitioners with immediate effect.
Ahead of the August Meetings that were held on 24 August 2023, the Board
continued to provide updates to shareholders on material new information in
support of its recommendation to vote against the Continuation Resolutions. At
the August Meetings, shareholders representing 58% of the votes cast (and a
majority of the issued share capital) voted against the Continuation
Resolutions in line with the Board's recommendation. The Board immediately
commenced an evaluation of the options for the Company's future in view of its
obligation, under the Company's Articles of Association, to put proposals to
shareholders for the reconstruction, reorganisation or winding-up of the
Company by 24 December 2023.
The second requisitioned general meeting was held on 25 September 2023.
Shareholders representing approximately 54% of the Company's total issued
share capital supported the current Board and the resolutions to replace the
current Board were not passed.
Change of Investment Manager
As the Continuation Resolutions were not passed at the August Meetings, the
Company was entitled to terminate its investment management agreement with the
Former Investment Manager summarily at any time and without further payment in
respect of the Former Investment Manager's initial five-year term of
appointment. Due to the deteriorated relationship with the Former Investment
Manager and concerns on the quality and timeliness of information provided by
it to the Board, the Board determined it would be in the best interests of
shareholders to terminate the Former Investment Manager's appointment as the
Investment Manager.
Following a competitive tender process, the Board announced on 28 September
2023 that it had agreed heads of terms to appoint Octopus Energy Generation as
the Transitional Investment Manager for an initial term expiring on 30 April
2024. Following completion of the customary take-on and regulatory procedures,
Octopus Energy Generation's appointment with immediate effect was subsequently
confirmed on 1 November 2023.
Decision to proceed with the RUMS project due to changed circumstances
On 11 October 2023 the Board announced its decision to proceed with the RUMS
project due to it having become the least value destructive option for
shareholders. This was based on the advice received from the Former Investment
Manager that:
· panel prices had fallen by 30% which meant that the negative NPV
was significantly less than at 31 December 2022;
· aborting the RUMS project would: (i) crystallise an immediate
write off of US$8.9 million of costs incurred in respect of the project as at
30 September 2023; (ii) result in the encashment of US$1.2 million of
performance bank guarantees; (iii) potentially indirectly expose SolarArise to
abandonment liabilities (net of the performance bank guarantees) of up to
US$32.3 million and likely protracted associated litigation; and (iv) lead to
reputational damage that could adversely impact the value of the SolarArise
platform; and
· whilst the RUMS project was clearly not value accretive,
proceeding to construct it would: (i) allow SolarArise to better manage its
liabilities in respect of the RUMS project, providing greater certainty
compared to a very uncertain process of aborting it, both in terms of the
value of any potential abandonment liabilities and the expected timeline for
settlement; and (ii) add a further 200 MW of capacity to the SolarArise
platform and, once operational as part of a wider portfolio, may facilitate a
more attractive exit of SolarArise in any future liquidity event.
To proceed with the RUMS project, the Board put forward a resolution to amend
the single country limit in the Company's investment policy to avoid any
potential breach of that limit as a consequence of proceeding with the RUMS
project (and also to make clarificatory changes to the gearing policy), which
was passed at a general meeting held on 31 October 2023.
Change of name and new corporate website
On 27 October 2023, the Company changed its name to Asian Energy Impact Trust
plc. The Company launched a new corporate website,
https://www.asianenergyimpact.com/, on 1 November 2023.
Unaudited NAV as at 30 September 2023
On 13 December 2023, the Board announced the unaudited NAV as at 30 September
2023 in order to provide investors with the most recent financial information
at the earliest possible time.
Unaudited net assets as at 30 September 2023 were US$88.5 million (NAV of 50.4
cents per share), a marginal decrease on the net assets (and NAV per share) as
at 30 June 2023.
The unaudited NAV as at 30 September 2023 (relative to 30 June 2023) reflects
an uplift the portfolio valuation of US$1.3 million, which is offset by
dividends paid of US$0.8 million, costs incurred by the Company of US$1.3
million and other movements of US$0.6 million.
At 30 September 2023, the Company had cash balances of US$63.6 million and
held US$1.7 million in its UK subsidiary, AEIT Holdings Limited ("AEIT
Holdings"). The Company has invested a further US$20.0 million in SolarArise
to fund the equity required for constructing the RUMS project.
As at 30 September 2023, gearing in AEIT's investment portfolio represented
54.6% of the Adjusted GAV.
Winding-up proposal
In accordance with its obligation to put forward proposals for the
reconstruction, reorganisation or winding-up of the Company to shareholders
for their approval within four months of the Continuation Resolutions not
having been passed, the Board convened a further general meeting on 19
December 2023 to consider a resolution to wind-up the Company and appoint
liquidators. The Board had considered possible options for a reconstruction or
reorganisation of the Company but, given, in particular, the concentrated and
illiquid nature of the Company's portfolio and the current size of the
Company, the Board concluded that a reorganisation or reconstruction was not
viable or in the best interests of shareholders as a whole. Accordingly, in
order to comply with its obligation under the Articles, the Board's only
option was to put a winding up proposal, but recommend shareholders vote
against the resolution principally for the following reasons: (i) if the
resolution was passed, it was expected that the listing of the Company's
shares would be permanently suspended; and (ii) if the resolution was not
passed (in-line with the Board's voting recommendation), the Board would have
the additional time needed to complete the strategic review of the options for
the Company's future and shareholders would have the opportunity to vote on
the outcome of the strategic review. Shareholders representing 83% of the
votes cast (and 69% of the issued share capital) voted against the winding-up
resolution, in line with the Board's recommendation.
Investments
No. of individual assets purchased in the period Net operational asset value(12) Adjusted GAV
2 US$ 42.7m US$ 200.3m
(12) The value of the Company's operational investment portfolio
excluding construction assets. These are not IFRS measures and are KPIs used
to monitor the performance of the underlying assets.
On 13 January 2023 the Company completed its acquisition of the remaining 57%
economic interest in SolarArise, owning 100% of SolarArise from this date. The
acquisition was made for a cash consideration of US$38.5 million. As at
31 December 2022, the Company had recognised an onerous contract provision in
respect of this commitment as the fair value of the investment was deemed to
be lower than the consideration paid to acquire the investment, primarily due
to potential penalties relating to aborting the 200 MW construction-ready
asset in Rewa Ultra Mega Solar Park (the "RUMS project").
On 31 May 2023 the Company, through its subsidiary AEIT Holdings, completed
the acquisition of 99.8% of VSS, a privately-owned company which holds 6.12 MW
of rooftop solar assets for US$3.1 million. The gross value of the assets was
US$4.6 million including external debt.
As at 30 June 2023, the Company had invested US$99.9 million, 55% of total
capital raised. Following the temporary share suspension, the Board suspended
acquisitions of, or commitments to, new investments. The Board will not make
any acquisitions or commitments to new investments pending the outcome of the
Board's strategic review of the options for the Company's future.
200 MW construction-ready
The RUMS project is held by a wholly-owned special purpose subsidiary,
Talettutayi Solar Projects Nine Private Limited ("TT9") of SolarArise.
Background
TT9 successfully bid for the RUMS project in a reverse auction conducted on 19
July 2021 and received the letter of award on 1 September 2021. Power purchase
agreements ("PPAs") were signed on 25 November 2021 with M.P. Power Management
Company Limited and Indian Railways, at a fixed rate tariff of INR 2.339 per
kWh for 25 years. The original deadline for the scheduled commercial operating
date ("SCOD") was 25 June 2023, but in September 2022 this was extended to 8
September 2023 due to a delay by Rewa Ultra Mega Solar Limited ("RUMSL") in
getting the initial tariff and other related approvals from the state
regulatory agencies. The original bid projections were for an overall project
cash cost of INR 5,880 million (US$78.4 million) funded by debt of INR 4,700
million (US$62.7 million) and equity of INR 1,180 million (US$15.7 million)
with an INR IRR of 13.5%. It was expected that the equity financing required
for the construction of the RUMS project would be funded entirely from
existing cash resources within SolarArise and ongoing operating cash flow from
its operational solar portfolio.
Increased cost estimates leading to temporary share suspension
During April 2023 it was disclosed to the Board that the cost of the RUMS
project and the attendant equity funding requirement had gone up significantly
thereby calling into question its economic viability. These cost increases had
arisen principally due to increases in module costs, the cost of the EPC
contract, goods and services tax and adverse movements in exchange rates in
comparison to the costs in the original bid assumptions. For example, the RUMS
project was originally bid with a module cost of US24.2 cents per watt peak
("c/Wp") but prices rose significantly during 2022, in particular due to
supply chain issues in the market and following the implementation of basic
customs duty of 40% on imported solar modules and 25% on imported solar cells
from 1 April 2022. This caused prices to rise to a peak of approximately US40
c/Wp, but had fallen to approximately US29 c/Wp by December 2022.
Later in April 2023, the Board was further advised by the Former Investment
Manager that potentially significant non‑completion liabilities would arise
in TT9 in the event that it did not proceed with the construction of the RUMS
project. Having received information that suggested the RUMS project may no
longer be commercially viable and that there were potentially significant
non-completion liabilities, the Company immediately sought the temporary share
suspension to undertake further work to clarify the position and complete its
2022 Annual Report and Accounts.
Valuation of RUMS project
As at 31 December 2022, the valuation of proceeding with the construction
project was estimated to be negative US$33.3 million based on 100% ownership,
whereas the liabilities associated of aborting the project were estimated to
be US$14.1‑US$33.2 million, with the lower end assuming 100% success in
implementing a mitigation strategy. As there is significant subjectivity in
determining the specific abort case liabilities to include in the valuation,
it has been determined that a market participant would view the SolarArise
portfolio in its entirety and that an appropriate assumption would be to write
the SolarArise portfolio down to zero. This results in applying an abort
liability of US$27.9 million for a 100% ownership.
Falling solar module prices during the period resulted in improving economics
for the project. Updating the model with the declining panel prices and other
assumption changes reduced the overall negative NPV. As at 30 June 2023, the
fair value of the RUMS project included within the valuation of SolarArise was
negative US$18.8 million. As this is less than the US$27.9 million assumed
abort liabilities, the RUMS project is valued on a proceed basis.
Latest updates
Falling solar module prices resulted in the Former Investment Manager
continuing to re-evaluate the project and the Board appointed an
Indian‑based independent adviser to complete a commercial assessment of the
RUMS project. The EPC provider was identified with high-level commercials
agreed and JA Solar was selected as the preferred solar panel provider with an
agreed price of US15.5c/Wp (US22.3c/Wp including import duties). Updating the
model with the declining panel prices and other assumption changes reduced the
overall negative NPV of the project to approximately US$13 million. Based on
advice from the Former Investment Manager, on 11 October 2023, the Board
agreed to provide funding of US$20 million by way of an INR-denominated
external commercial borrowings loan from the Company to SolarArise to enable
construction of the RUMS project to proceed.
The Transitional Investment Manager has since refined the RUMS project model
and the published valuation as at 30 September 2023 is a negative NPV of
US$14.6 million.
Construction of the RUMS project has commenced. On the recommendation of the
Transitional Investment Manager, the Company has appointed Fichtner as the
owner's technical advisor to the RUMS project, providing boots on the ground
to oversee the construction of the asset on a day-to-day basis. An official
extension has been granted for the SCOD to 5 February 2023. As at early
January, the third of five shipments of panels have arrived on site. Although
risks remain due to the size and tight timelines of the project, it is
currently expected to be commissioned before 31 March 2024.
Portfolio Breakdown
Portfolio Performance
During the six-month period to 30 June 2023, the investment portfolio's
electricity generation was 210,974 MWh, 1.6% below budget due to lower than
expected irradiation in the period. This reflects the proportionate share of
the electricity generated by investments from the date of acquisition and
therefore takes into account 100% of SolarArise from 13 January 2023, the
date on which AEIT purchased the remaining 57% stake, and 99.8% of VSS from 31
May 2023.
Output generated by underlying operational assets(14) Revenue generated by underlying operational assets(14) EBITDA generated by underlying operational assets(14 15)
210,974 MWh US$13.3m US$10.8m
(-1.6% to budget(13)) (+1.6% to budget(13)) (-2.6% to budget(13))
Note: Performance for NISPI and SolarArise have been compared to FY23
performance expected per the 31 December 2022 valuation models. The
assumptions that drove the cashflows of those models are detailed in the 2022
Annual Report and Accounts available on the Company's website.
(13 ) Budget is based on December 2022 valuation models for NISPI
and SolarArise.
(14 ) Pro-rated for economic ownership.
(15 ) Excludes SolarArise holding company.
Philippines
The Philippines portfolio comprises NISPI, an investee company with three
operating solar plants with a total capacity of 80 MW situated on the island
of Negros, Philippines. All three solar plants export electricity to the grid
at the wholesale electricity spot market ("WESM") price.
Generation during the first six months of the year was 53.9 GWh, an increase
of 36.3% compared to the same period in 2022, primarily due to the one-off
grid curtailment seen in 2022 stemming from the effects of Typhoon Rai
(December 2021) and the subsequent damaged Negros-Cebu submarine cable.
However, generation for the period ended 30 June 2023 was 2% below budgeted
generation of 54.8 GWh. The key driver for this was irradiation which was 5%
below expectation. Adjusting for irradiation, the assets outperformed the
weather adjusted budget by 4%.
Despite the decrease in generation, NISPI generated revenues of PHP 397.2
million in the first six months of the year, a 6.3% increase to budgeted
revenues of PHP 373.8 million, primarily due to higher than expected WESM
prices being achieved of 7.4PHP/kWh compared to a budgeted price of
6.8PHP/kWh.
As at 30 June 2023, on a 100% basis, NISPI held PHP 839 million of cash
reserves, equivalent to US$15.1 million and generated EBITDA of PHP 297
million, equivalent to US$5.3 million during the six months to June 2023.
NISPI has no debt.
India
As at 30 June 2023, the Indian portfolio comprised a 100% economic interest in
SolarArise, an Indian platform with interests in six operating solar plants
with total generation of 233 MW and one 200 MW construction-ready solar plant,
situated across five states in India. All plants are or will export
electricity under a 25-year fixed-price government PPA.
During the six months to 30 June 2023, generation for the SolarArise
operational portfolio was 2% below budget, primarily due to lower than
expected irradiance, which was 3% below budgeted irradiation for the period.
In particular, performance of Telangana II was 13% below the budgeted
generation as irradiance was 16% lower than expected due to air pollution in
the area.
Turnover for the operational portfolio for the period was INR 853 million,
equivalent to US$10.4 million, compared to a budgeted amount of
INR 855 million, an underperformance of 0.2%. This is due to the
underperformance in generation, offset by carbon credit income received during
the period of INR 38 million. EBITDA (excluding management fees payable to the
SolarArise holding company) for the period was INR 710 million, equivalent to
US$8.6 million, compared to a budget of INR 746 million, an underperformance
of INR 36 million due to costs being higher than forecasted. This is
predominantly due to increased costs incurred to address issues with excess
flooding and higher than expected spares expenses of INR 8.3 million to
replenish stock used.
Over the period, management fees of INR 38.4 million were paid from the
operational SPVs to the SolarArise holding company. This was used to fund, in
part, holding company costs of INR 87.9 million, which comprise asset
management fees of INR 41.7 million and other ongoing holding company running
costs of INR 46.2 million, with the remainder being funded via interest income
and loan repayments from the operational SPVs.
At 30 June 2023, SolarArise had INR 594 million of cash reserves, equivalent
to US$7.2 million, a fall of INR 59 million (US$ 0.7 million) since 31
December 2023, due to the payment of a performance bank guarantee ("PBG") for
the TT8 development project of US$1.7 million during the period (see Interim
Report for further details). SolarArise had approximately US$106.8 million of
borrowings.
Vietnam
On 31 May 2023, AEIT completed the acquisition of a 99.8% stake in VSS and its
four subsidiaries, which hold 6.12MW of rooftop solar assets for US$3.1
million.
Over the period following acquisition, the assets performed 17% below
investment case driven by underperformance of the Hoang Thong system (33%
below budget). This is a result of the sawdust from the facility below
escaping and settling on the panels. A solution for this is under
investigation with the O&M provider.
At 30 June 2023, VSS had VND 5.8 billion of cash reserves, equivalent to
US$0.2 million and approximately US$1.4 million of borrowings.
Portfolio Valuation
Regular valuations are undertaken for the Company's portfolio of assets. The
process follows International Private Equity Valuation Guidelines, typically
using a discounted cash flow ("DCF") methodology. The DCF methodology is
deemed the most appropriate valuation basis where a detailed projection of
likely future cash flows is possible. Due to the asset class, availability of
market data and the ability to project the asset's performance over the
forecast horizon, a DCF valuation is typically the basis upon which renewable
assets are traded in the market. In a DCF analysis, the fair value of the
investee companies is the present value of the expected future cash flows,
based on a range of operating assumptions for revenues, costs, leverage and
any distributions, before applying an appropriate discount rate. Key
macroeconomic and fiscal assumptions for the portfolio valuation are set out
in note 7 to the Interim Financial Statements. The assets held in the
Company's UK subsidiary, AEIT Holdings, substantially comprise working capital
balances and therefore the Directors consider the fair value of AEIT Holdings
to be equal to its book value.
In accordance with the Company's valuation policy, the investment portfolio as
at 30 June 2023 has been valued by the Transitional Investment Manager. PwC
was engaged as an independent valuation expert to provide a private
independent opinion on the reasonableness of the valuations of SolarArise,
NISPI and VSS as at 30 June 2023 which were prepared by the Transitional
Investment Manager, and adopted by the Board and AIFM when they approved the
30 June 2023 valuations.
The net asset value as at 30 June 2023 was US$89.9 million or 51.2 cents per
share, an increase of US$3.3 million since the previous valuation of US$86.6
million as at 31 December 2022. Included in the net asset value as at 30 June
2023 is cash held at the Company of US$68.2 million (31 December 2022:
US$115.8 million).
The fair value of the Company's underlying investment portfolio as at 30 June
2023 was US$23.9 million, an increase of US$12.4 million since 31 December
2022. This is predominantly driven by the investment in the Vietnamese assets
and the inclusion of a proceed NPV for the RUMS project within the SolarArise
portfolio. Previously, as at 31 December 2022, the SolarArise portfolio had
been written down to zero reflecting the abort liabilities associated with not
proceeding with the RUMS project.
Fair value of investments from 31 December 2022 to 30 June 2023
Page 14 of the Interim Report demonstrates AEIT's movement in fair value of
investments (US$m).
Investments in the portfolio
During the period, AEIT announced the following investments:
· In January 2023, the Company completed its acquisition of the
remaining 57% economic interest in SolarArise, owning 100% of SolarArise from
this date. The acquisition was made for a cash consideration of US$38.5
million. As at 31 December 2022, the Company recognised an onerous contract
provision in respect of this commitment as the fair value of the investment
was deemed to be lower than the consideration paid to acquire the investment,
primarily due to penalties relating to aborting the 200 MW construction-ready
asset in the RUMS project. As a result, the impact of the valuation as at 30
June 2023 of this acquisition was neutral.
· In 31 May 2023, the Company, through its subsidiary AEIT
Holdings, completed the acquisition of a 99.8% stake in VSS and its four
subsidiaries, which hold 6.12 MW of rooftop solar assets. Total funding into
AEIT Holdings was US$5.0 million, of which US$3.1 million was used to fund the
acquisition of VSS. As at 30 June 2023, US$1.7 million remains as cash sitting
within AEIT Holdings and is included within the fair value of the investment
portfolio. Given proximity of the acquisition of VSS to the valuation date,
the fair value of VSS as at 30 June 2023 is deemed to be equal to cost.
Discount rate unwind
This bridge step reflects the net present value of future cashflows being
brought forward from the valuation date used for the acquisitions to 30 June
2023.
Macroeconomic assumptions
The main economic assumptions used in the portfolio valuation as at 30 June
2023 are inflation forecasts and foreign exchange rates. Updating for
assumptions as at 30 June 2023 had a small positive impact on the valuation.
· Inflation forecasts: Our approach is to blend two inflation
forecasts from reputable third-party sources.
· Interest rates: Interest rate forecasts are only relevant for the
Indian portfolio of assets. As existing facility agreements are in place, we
have assumed the current rates as at 30 June 2023 as the fixed rates long
term.
· Foreign exchange rate: Underlying valuations are calculated in
local currency and converted back to USD at the spot rate at the relevant
valuation date.
Power price forecasts
Unless fixed under PPAs (such as the India portfolio) or otherwise hedged, the
power prices used in the valuations are based on an equal blend of two
independent and widely used market consultants' technology-specific capture
price forecasts for each asset.
Updating the valuations for the most recent power price forecasts available
resulted in a decrease in the valuation. This is primarily due to reduced
market forecasts, particularly commodity prices in the near term (with
delivered coal and Liquified Natural Gas ("LNG") being two of these major
commodities) being key drivers in the expected power prices in the
Philippines. Prices were revised down further as market forecasters are
expecting a shift from a previous oversupply of coal in the region to greater
renewable energy penetration over the near to medium term.
Revaluation of the RUMS project
As at 31 December 2022, the valuation of proceeding with the construction
project was estimated to be negative US$33.3 million based on a 100%
ownership, whereas the liabilities associated of aborting the deal were
estimated to be US$14.1-$33.2 million. As there is significant subjectivity
in determining the specific abort case liability to include in the valuation,
it has been determined that a market participant would view the SolarArise
portfolio in its entirety and that an appropriate assumption would be to
write the SolarArise portfolio down to zero. As such, an abort liability of
US$27.9 million was recognised (based on 100% ownership). Falling solar
module prices over the 6 months to June 2023 has resulted in improving
economics for the project. Updating the model with the declining panel prices
and other assumption changes reduced the overall negative NPV. As at 30 June
2023, the fair value of the RUMS Project included within the valuation of
SolarArise was negative US$18.8 million. As this is less than the negative
US$27.9 million assumed abort liabilities, the RUMS project is now valued on a
proceed basis.
Change in discount rates
A range of discount rates are applied in calculating the fair value of the
investments, considering the location, technology and lifecycle of each asset
as well as leverage and the split of fixed and variable revenues.
In determining the reasonableness of discount rates, these have been estimated
by considering data points from transactional and other valuation benchmarks,
disclosures in broker reports, other public disclosures and broader market
experience of investors in the market. Discount rates are in the range
10-12.5% across the assets with the construction asset in India being top of
the range and Vietnam assets at the bottom of the range. Changes to discount
rates had minimal impact on valuations.
Other movements
This refers to the balance of valuation movements in the period excluding the
factors noted above.
Of this, -US$0.5 million relates to underperformance of the operational
portfolio primarily driven by lower irradiance than budget in India and the
Philippines as well as the impact of delaying the dates of assumed capital
reductions in the operational portfolios that are assumed to eliminate cash
traps in the portfolio assets.
Also within the step, resulting in a neutral valuation impact, is the funding
of TT8 development costs and the RUMS project construction costs out of excess
cash sitting in the SolarArise holding company. In June 2023, a PBG of
US$1.7 million was paid in relation to the TT8 project. The PBG became
payable when the SPV, Talettutayi Solar Project Eight Private Limited ("TT8")
was confirmed as a successful bidder for the PPA with Maharashtra State
Electricity Distribution Company Limited ("MSEDCL"). As at 30 June 2023, the
PBG was fully refundable and therefore held at cost as an asset within the
investment portfolio. The PPA was signed post period end in August 2023.
Further payments were also made in relation to construction of the RUMS
project during the period.
Portfolio valuation sensitivities
For each of the sensitivities shown, it is assumed that potential changes
occur independently with no effect on any other assumption. The sensitivity
movements are presented both on a cents per share basis and as a percentage of
the Company NAV. As VSS projects are held at cost as at 30 June 2023, the
sensitivities for VSS are not included below however are not expected to have
a material impact on the overall results.
Page 16 of the Interim Report reflects the impact of the portfolio valuation
sensitivities.
Discount rate: A range of discount rates are applied in calculating the fair
value of investments, considering the location, technology and lifecycle stage
of each asset as well as leverage and the split of fixed to variable revenues.
A 100bps increase and decrease in the discount rate for each portfolio has
been applied.
Generation: The sensitivity assumes a 10% increase or decrease in total
forecast generation relative to the base case for each year of the asset life.
Power price curve: The sensitivity assumes a 25% increase or decrease in power
prices relative to the base case for each year of the asset life.
Inflation: The sensitivity assumes a 0.5% increase or decrease in inflation
relative to the base case for each year of the asset life. Where revenue or
cost items have a contractually defined indexation profile, this has not been
sensitised.
FX rate: Investments are held in the currency of the territory in which the
asset is located. A flat decrease or increase of 10% in the relevant rate
over the remaining asset life of each plant has been applied to the final
values as at 30 June 2023.
Cash extraction: As at 30 June 2023, NISPI, the SolarArise holding company and
each of the SolarArise SPVs had significant negative distributable reserve
balances, prohibiting the payment of dividends. The valuations have been
updated to reflect this but assume that some measures to eliminate cash traps
within a reasonable timeframe are implemented, for example, capital
reductions. The sensitivity assumes that such measures to eliminate cash traps
are delayed by c. 12 months at both NISPI and SolarArise.
Financial Review
The Interim Financial Statements of the Company for the six-month period
ending 30 June 2023 are set out in the Interim Report. These Interim Financial
Statements have been prepared in accordance with UK-adopted international
accounting standard IAS 34 Interim Financial Reporting and the applicable
legal requirements of the Companies Act 2006.
Basis of accounting
The Company applies IFRS 10 and Investment Entities: Amendments to IFRS 10,
IFRS 12 and IAS 28, which state that investment entities should measure all
their subsidiaries that are themselves investment entities at fair value. The
primary impact of this application, in comparison to consolidating
subsidiaries, is that the cash balances, the working capital balances and
borrowings in its subsidiaries are presented as part of the Company's fair
value of investments.
Results for the period
As at As at
30 June 31 December
2023 2022
US$m US$m
Net asset value 89.9 86.6
Fair value of Company's investments 23.9 11.5
Net assets per share (cents) 51.2 49.2
Onerous contract provision with respect to 57% acquisition of SolarArise - (38.5)
For the period For the period
to to
30 June 2023 30 June 2022
US$m US$m
Movement on fair value of investments 7.3 2.6
Profit for the period 5.4 2.6
Net assets
Net assets principally comprise the fair value of the Company's investments of
US$23.9 million, the Company's cash balance of US$68.2 million and US$2.2
million of the Company's other assets and liabilities. See further breakdown
below:
30 June 31 December
2023 2022
US$m US$m
Fair value of operational assets(16) 39.4 23.5
Fair value of construction assets (the RUMS project) (18.8) (12.0)
Fair value of development assets (TT8 project) 1.7 -
Fair value of AEIT Holdings 1.6 -
Fair value of Company's investments 23.9 11.5
Company's cash 68.2 115.8
Onerous contract provision - (38.5)
Company's other assets and liabilities (2.2) (2.2)
Net asset value 89.9 86.6
Number of shares (million) 175.7 175.7
Net asset value per share (cents) 51.2 49.3
(16 ) Based on economic ownership of assets in SolarArise, NISPI
and VSS and includes the SolarArise holding company.
Income
In accordance with the Statement of Recommended Practice: Financial Statements
of Investment Trust Companies and Venture Capital Trusts ("SORP") issued in
July 2022 by the Association of Investment Companies ("AIC"), the statement of
comprehensive income differentiates between the 'revenue' account and the
'capital' account, and the sum of both items equals the Company's profit for
the year. Items classified as capital in nature either relate directly to the
Company's investment portfolio or are costs deemed attributable to the
long-term capital growth of the Company.
In the period ending 30 June 2023, the Company's operating profit was US$5.4
million which is mainly comprised of the movement of fair value of
investments, which have increased in value by US$7.3 million since 31 December
2022. The operating expenses included in the statement of comprehensive income
for the year were US$1.8 million. Following the temporary suspension of the
Company's shares, exceptional costs of US$1.1 million have been incurred
during the period in respect of professional advice and services received.
Dividends
During the period, interim dividends totalling US$2.1 million were paid (1.18
cents per share paid in respect of the period from 1 October 2022 to 31
December 2022).
Post period end interim dividends were paid on 19 July 2023 of 0.44 cents per
share in respect of the period from 1 January 2023 to 31 March 2023, a
dividend paid on 11 September 2023 of 0.44 cents per share in respect of the
period from 1 April 2023 to 30 June 2023, and a dividend paid on 11 December
2023 of 0.44 cents per share in respect of the period from 1 July 2023 to 30
September 2023. The Board does not intend to declare a dividend in respect of
the quarter ended 31 December 2023 prior to completion of the strategic
review, which is expected by the end of the first quarter of 2024.
Impact Report
As at 30 June 2023
Asia pays a critical role in the global climate challenge. Strategic
investments in Asia can significantly contribute to the reduction of global
emissions and prevent widespread socioeconomic losses. Asia is home to four of
the top 10 largest greenhouse gas emitters, contributing over 50 percent of
the world's total emissions(17). One of AEIT's current market countries,
India, takes third place in the world's top GHG emitting countries.
(17 )
https://www.wri.org/insights/interactive-chart-shows-changes-worlds-top-10-emitters.
AEIT is fully committed investment into renewable energy assets. This not only
enables people to invest in line with their values but also helps to
facilitate the transition to a more sustainable future. Such investments
directly contribute to the United Nations Sustainable Development Goals ("UN
SDGs"), primarily through the increase in access to affordable clean energy
(SDG 7). The investment strategy finances renewable energy generation, avoids
GHG emissions, while having a positive impact in the communities where it
invests.
The Company integrates environmental, social and governance ("ESG") risk
management into its due diligence and management systems and applies a
triple-return approach that considers social and environmental objectives
alongside the financial returns of the Company.
Financial Return Environmental Return Social Return
Providing shareholders with attractive dividend growth and prospects for Protecting natural resources and the environment. Delivering economic and social progress, through job creation and contribution
long-term capital appreciation. to UN SDGs.
AEIT is classified as an Article 9 financial product with a sustainable
objective under the EU Sustainable Finance Disclosure Regulation ("SFDR") and
has made its periodic disclosures in its latest annual report.
Given the delay in publishing the Interim Report, a detailed Impact Report has
not been provided. Instead, a high-level overview of impact metrics has been
disclosed. See the 2022 Annual Report for an update on the Company's Impact
performance. An updated view will be provided in the 2023 Annual Report, which
is expected to be available in April 2024.
Impact highlights(18)
Proving financial returns through clean energy generation
The financial return target, in particular yield through dividends, is
contributed to through the generation of clean energy and the operational
performance of assets. Put simply, with all other things being equal, the more
green energy an asset produces, the better the financial returns for investors
through receiving revenue for the electricity that is sold. In this respect,
there is no tradeoff between financial returns and positive impact through
avoided emissions.
In looking through the impact lens, financial returns are generated though the
installed operational capacity and the resulting clean energy generated, and
these returns are sustainable through the alignment to the EU Taxonomy.
Installed operational capacity - MW Clean energy generated - MWh Equivalent number of people provided with clean electricity - No.(19)
233 - SolarArise 210,974 197,508 - India
32 - NISPI 25,543 - Philippines
6 - VSS 258 - Vietnam
(18 ) These metrics have been proportioned to account for AEIT's
share of the SolarArise, NISPI and VSS assets during the reporting period.
This considers a: 43% ownership of SolarArise from 1st January 2023 and then
100% of SolarArise from 13th January 2023, a 40% ownership of NISPI from 1st
January 2023 and a 99.8% ownership of VSS from 31st May 2023.
(19 ) On the basis of: IEA 2020. Average per capita electricity
consumption in India (0.96 MWh), in the Philippines (0.84 MWh) and in Vietnam
(2.44 MWh).
Providing environmental returns through GHG emission avoidance
Through investments in renewable energy, the Company protects natural
resources and the environment, directly avoiding greenhouse gas emissions.
Avoided emissions(20)- tCO(2)e Equivalent UK cars taken off the road(21) - No.
168,825 92,595
(20 ) Carbon avoided is calculated using the International
Financial Institution's approach for harmonised GHG accounting.
(21 ) Equivalent cars is calculated using a factor for displaced
cars derived from the UK government GHG Conversion Factors for Company
reporting.
Providing social returns through quality jobs created
The Company aims to contribute to delivering economic and social progress and
help build resilient communities through supporting jobs and contributing to
the UN SDG's.
Employment directly supported full time equivalent ("FTE") jobs - No. Major health and safety incidents reported resulting in lost working time -
No.
315
0
Contributing to UN SDGs
Through its investments and additional impact activities, the Company made
active contributions to four UN SDGs as outlined below.
Affordable and clean energy - 7
Decent work and economic growth - 8
Climate action - 13
Life on land - 15
Governance
Interim Management Report
The Directors are required to provide an Interim Management Report in
accordance with the Financial Conduct Authority ("FCA") Disclosure Guidance
and Transparency Rules ("DTR"). The Chair's Statement, Company Developments
section and the Investments section in this Interim Report provide details of
the important events which have occurred during the period and their impact on
the Interim Financial Statements. The following statements on principal risks
and uncertainties, related party transactions, going concern and the
Directors' Responsibility Statement below, together constitute the Interim
Management Report for the Company for the six months ended 30 June 2023. The
outlook for the Company is discussed in the Chair's Statement.
Risk and Risk Management
The Company's approach to risk governance and its risk review process are set
out in the risks and risk management section of the 2022 Annual Report.
Following the issues that came to light during the audit of the 2022 Annual
Report and Financial Statements, the Audit and Risk Committee have reflected
on risks that have subsequently crystallised and the changes they have made as
a result. These are detailed in the table below:
Crystalised risk Impact of crystallisation Steps taken/changes made
Valuation process · Temporary share suspension due to a material uncertainty · A detailed review of the key assumptions included in the
regarding the fair value of its assets financial models and the valuation methodology for the Company's operational
assets in India and the Philippines which had been prepared by the Former
· Identified errors and inaccuracies in the prior period Investment Manager carried out by an independent third-party,
valuations PricewaterhouseCoopers LLP ("PwC")
· Inaccurate or aggressive valuation assumptions identified by the
Company following this review have been updated in line with best practice and
market standards
· Introduction of a SolarArise holding company model to accurately
reflect asset management costs, Indian tax liabilities and cash repatriation
out of India
· Replacement of the Former Investment Manager effective 31 October
2023 by the Transitional Investment Manager
· Replacement of the former independent valuer
· Appointment of PwC as an independent valuation expert to provide
a private independent opinion on the reasonableness of the valuations that are
prepared by the Transitional Investment Manager in respect of the 31 December
2022 and subsequent valuations
· Commenced a review of value optimisation strategies with
Transitional Investment Manager
Asset valuations · Decreases in the NAV when subsequent valuations carried out using · Replacement of the Former Investment Manager effective 31 October
less aggressive assumptions in line with best practice and market standards 2023 by the Transitional Investment Manager
· Updated valuation process as detailed above
· The Transitional Investment Manager has additional controls in
place for any conflicted transactions
Reliance on third‑party service providers (Company and asset level) · Valuations based on inaccurate or aggressive assumptions · Replacement of the Former Investment Manager effective 31 October
subsequently being updated in line with best practice and market standards, 2023 by the Transitional Investment Manager. The Transitional Investment
leading to a large decline in the NAV Manager has a comprehensive due diligence process that should flag
pre-construction risks at the point at which commitments were made
· Inherited asset structures that do not optimise cash extraction
by AEIT, thus requiring reorganisation · The Transitional Investment Manager is currently undertaking a
review of governance procedures across all of the investment portfolio to
· Asset management contracts have not been formalised propose potential improvements to the Board
· Reports from whistleblowers of key information being withheld · The former independent valuer has stepped down and PwC have been
from the Board, particularly with regard to the cost and funding of the appointed as the independent valuation expert to provide a private independent
proposed construction of the RUMS project and the potential penalties opinion on the reasonableness of the valuations that are prepared by the
that could result from aborting it Transitional Investment Manager in respect of the 31 December 2022 and
subsequent valuations
· The Board, which had embedded itself in the detail of the
Company's activities, has ensured, in so far as possible, that the new service
providers have been given the appropriate handover and information to carry
out their duties
· Getting in place appropriate asset management agreements is a
priority for the Transitional Investment Manager.
· Changes made to SPV governance to ensure that the Board are aware
of all commitments made in the underlying investments prior to signing
Construction risk · Changes in macro-economic factors from the commitment date to the · Appointment of independent legal advisors to review potential
construction commencement date, such as the increase in solar panel prices abandonment liabilities associated with the RUMS project and determine
(and EPC costs) and the changes in FX rates probability of crystalisation
· Commitments made without the Board being made aware of all · Appointment of an independent India-based financial adviser to
associated risks of the project advise the Board on the options for the RUMS project, including proceeding
with construction and aborting it, and the associated risks of each option
· Appointment of an independent technical advisor, Fichtner, to
oversee the RUMS project and provide independent reports to the Transitional
Investment Manager and the Board
Generation · Operational assets acquired underperformed against P50 technical · Appointment of independent technical advisor, Sgurr, to conduct
assumptions refreshed due diligence on the P50 technical assumptions to validate or update
modelled assumptions in 31 December 2023 and subsequent valuations
· Pending receipt of the Sgurr report, a reduction has been
applied to the P50 yield assessments used for the 31 December 2022, 30 June
2023 and 30 September 2023 valuations to reflect observed historical
underperformance of the operational assets when compared with the level of
generation assumed at the time of acquisition
The principal and emerging risks to the achievement of the Company's
objectives are unchanged from those reported in the 2022 Annual Report.
Task Force on Climate-related Financial Disclosures ("TCFD")
Our TCFD approach is detailed in the 2022 Annual Report. An updated TCFD
disclosure covering the investments made in 2023 will be provided in the 2023
annual report.
Temporary share suspension
Following the material uncertainty regarding the fair value of the Company's
investment portfolio as at 31 December 2022, the Company requested the FCA to
suspend the listing of its ordinary shares (with a corresponding request made
to the London Stock Exchange for a suspension of trading) with effect from
7.30 a.m. on 25 April 2023, with reference to the FCA's Listing Rule
5.1.2G(3).
Restoration of the listing
The Company is working on the electronic tagging of the 2022 Annual Report and
Accounts, following which it will apply to the FCA for the restoration of the
listing and will make a further announcement in due course.
Related party transactions
The Company's AIFM is considered a related party under the Listing Rules. The
Company's AIFM is Adepa Asset Management S.A. The AIFM is entitled to an
annual management fee, subject to a minimum fee of US$75,000 per annum, at the
following rates, based on the NAV and payable quarterly in arrears:
NAV Fee rate
Up to US$200 million 0.055%
Between US&200-400 million 0.045%
Between US&400-1,000 million 0.035%
Above US$1 billion 0.025%
The AIFM is also entitled to annual risk management fee and AIFMD reporting
fees of EUR14,500. The AIFM's appointment is terminable by either party on not
less than six months' notice in writing.
The AIFM, with the agreement of the Company, has delegated the portfolio
management of the Company to the Investment Manager. The Investment Management
Agreement between the AIFM, Company and Investment Manager (the "IMA") sets
out the matters in respect of which the Investment Manager has authority and
responsibility, subject to the overall control and supervision of the Board.
For the period from IPO to 31 October 2023, the Investment Manager was
ThomasLloyd Global Asset Management (Americas) LLC (the "Former Investment
Manager"). Under the relevant IMA, the Former Investment Manager was entitled
to a management fee, details of which are included in note 12 to the Interim
Financial Statements. On 15 September 2023, following the failure of the
Continuation Resolutions at the requisitioned general meeting and the
adjourned annual general meeting held on 24 August 2023, the Board served
notice on the Former Investment Manager terminating the IMA with effect from
31 October 2023. From 1 November 2023, Octopus Energy Generation ("OEGEN") was
appointed as Transitional Investment Manager to cover an initial period
through to 30 April 2024. For this initial term, the Company will pay OEGEN a
management fee of US$1.35 million. At the end of the term, at the discretion
of the Board, there is scope for OEGEN to earn an additional management fee of
up to US$0.55 million for its services during the transitional period.
The Board, together with its advisers, is currently conducting a strategic
review of the options for the Company's future, including the appointment of
an Investment Manager for the period post 30 April 2024.
Details of the amounts paid to the Company's AIFM, Former Investment Manager
and the Directors during the period are included in the note 12 to the Interim
Financial Statements. There were no amounts paid to the Transitional
Investment Manager for the period under review.
Going concern
The Company has undertaken an evaluation of its cashflow forecasts and going
concern position, including downside scenarios. This evaluation demonstrated
that the Company has sufficient cash to meet all of its liabilities within the
going concern assessment period, which is a period of at least 12 months from
the date the Financial Statements were authorised for issue.
In reaching this conclusion, the Directors considered the Company's net assets
as at 30 June 2023 of US$89.9 million, its cash reserves at that date of
US$68.2 million, consequences of the share suspension and its recurring
operating expenditure requirements, both to date and into the future. During
the 6 months ended 31 December 2023, the Company funded the construction of
the RUMS project via a US$20.0 million loan, paid dividends to its
shareholders of US$2.3 million and paid the running costs of the Company. As
at 31 December 2023 the Company had cash reserves of US$41.4 million and AEIT
Holdings had cash reserves of US$1.7 million. This cash position has been used
in assessing the Company's going concern position and cash flow forecasts.
The Company continues to meet its day-to-day liquidity needs through its cash
resources. Assumed future cash inflows over the going concern period include
the receipt of dividend and interest income from its underlying investments
and the main cash outflows are the ongoing running costs of the Company and
the payment of dividends to its shareholders. A key priority for 2024 for the
Board and Transitional Investment Manager is to undertake capital
restructuring to facilitate the repatriation of cash out of the underlying
investment portfolio. A downside scenario modelled within the cash flows in
the going concern assessment assume this repatriation is delayed until after
the end of the going concern period (i.e. no dividend or interest income is
received from the Company's investments during that period). Even in this
scenario, the Company still has sufficient cash reserves to continue as a
going concern. The cash flow forecasts in the downside scenario also assume no
further investment commitments during the going concern period (the Company
had no outstanding investment commitments at 31December 2023 and at the date
of signing this Interim Report).
The future of the Company relies heavily on the outcome of the current
strategic review of the options for the future of the Company which is
expected to conclude by the end of the first quarter of 2024. At the date of
this Interim Report, based on the information currently available, the most
likely outcomes of the strategic review remain a proposal for either the
relaunch of the Company (potentially with a new investment objective,
investment policy, target returns and/or Investment Manager but maintaining
the impact-led, Asian focus) or a managed wind-down. Shareholders will have
the opportunity to vote on the outcome of the strategic review.
The Board does not intend to declare a dividend in respect of the quarter
ended 31 December 2023, nor does it intend to make any further acquisitions or
commitments prior to completion of the strategic review.
While the Directors therefore have a reasonable expectation that the Company
has adequate resources to continue in operational existence for the
foreseeable future and the going concern basis of accounting has been adopted
in preparing the Interim Financial Statements, the outcome of the strategic
review as set out above is not within the control of the Board and is
therefore uncertain, and will solely be down to a vote of the shareholders,
who may vote for a managed wind up of the Company. In light of this
shareholder vote and that shareholders may vote for a managed wind up of the
Company, there remains a material uncertainty surrounding the Company's future
and whether it constitutes an ongoing going concern.
Responsibility Statement of the Directors
The Directors acknowledge responsibility for the interim results and approve
this Interim Report. The Directors confirm that to the best of their
knowledge:
a) the condensed financial statements have been prepared in accordance
with IAS 34 "Interim Financial Reporting" and give a true and fair view of the
assets, liabilities and financial position and the profit of the Company as
required by the FCA's Disclosure Guidance and Transparency Rules. DTR 4.2.4R;
b) the interim management report, included within the Chair's Statement
and Investment Manager's Report, includes a fair review of the information
required by DTR 4.2.7R and DTR 4.2.8R.
This responsibility statement has been approved by the Board.
Sue Inglis
Chair
22 January 2024
Financial Statements
Condensed Statement of Comprehensive Income
For the six-month period ended For the eight-month period ended
30 June 2023 (unaudited)
30 June 2022 (unaudited)
Revenue Capital Total Revenue Capital Total
Notes $'000 $'000 $'000 $'000 $'000 $'000
Investment income - - - - - -
Movement in fair value of investments 7 - 7,304 7,304 - 2,618 2,618
Total revenue - 7,304 7,304 - 2,618 2,618
Investment management fees (156) (156) (312) (389) (389) (778)
Administration and professional fees 3 (1,763) - (1,763) (610) (610)
Net foreign exchange losses 154 - 154 1,367 - 1,367
(Loss)/profit before taxation (1,765) 7,148 5,383 368 2,229 2,597
Taxation 4 - - - - - -
(Loss)/profit for the period (1,765) 7,148 5,383 368 2,229 2,597
(Loss)/earnings per share (cents) - basic and diluted 6 (1.01) 4.09 3.08 0.39 2.37 2.76
The total column of the above statement of comprehensive income is the profit
and loss account of the Company. The 'Revenue' and 'Capital' columns represent
supplementary information prepared under guidance issued by the Association of
Investment Companies. All expenses are presented as revenue items except 50%
of the investment management fee, which is charged as a capital item within
the Statement of Comprehensive Income.
All revenue and capital items in the above statement derive from continuing
operations.
Comparatives are for the period from 1 November 2021 to 30 June 2022 and
represent operating activities from the date of listing of its ordinary shares
on the London Stock Exchange on 14 December 2021 to 30 June 2022.
The accompanying notes are an integral part of these Interim Financial
Statements.
Condensed Statement of Financial Position
As at 30 June 2023 31 December 2022
(unaudited) (audited)
Notes $'000 $'000
Non-current assets
Investments at fair value through profit or loss 7 23,875 11,491
Current assets
Trade and other receivables 1,328 633
Cash and cash equivalents 68,215 115,819
69,543 116,452
Current liabilities: amounts falling due within one year
Trade and other payables (3,525) (2,863)
Onerous contract provision 7 - (38,500)
(3,525) (41,363)
Net current assets 66,018 75,089
Net assets 89,893 86,580
Capital and reserves
Share capital 8 1,757 1,757
Share premium account 63,518 63,518
Special distributable reserve 9 108,019 110,089
Revenue reserve (4,048) (2,283)
Capital reserve (79,353) (86,501)
Equity attributable to owners of the Company 89,893 86,580
Net assets per share (cents) 10 51.17 49.28
The unaudited Interim Financial Statements were approved by the Board of
Directors and authorised for issue on 22 January 2024 and were signed on its
behalf by:
Sue Inglis
Chair
The accompanying notes are an integral part of these Interim Financial
Statements. Incorporated in England and Wales with registered number 13605841.
Condensed Statement of Changes in Equity
For the period ended 30 June 2023 (Unaudited)
Share Share premium account Special reserve Revenue reserve Capital Total shareholders' funds
capital
reserve
Notes $'000 $'000 $'000 $'000 $'000 $'000
Opening equity as at 1 January 2023 1,757 63,518 110,089 (2,283) (86,501) 86,580
(Loss)/profit and total comprehensive (expense)/
income for the period - - - (1,765) 7,148 5,383
Dividends paid 5 - - (2,070) - - (2,070)
Closing equity as at 30 June 2023 1,757 63,518 108,019 (4,048) (79,353) 89,893
For the period ended 30 June 2022 (unaudited)
Share capital Preference shares Share premium account Special distributable reserve Revenue reserve Capital reserve Total shareholders' funds
Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000
Opening equity as at 1 November 2021 - 66 - - - - -
Shares issues in the period 1,154 - 114,239 - - - 115,393
Share issue costs - - (2,247) - - - (2,247)
Transfer to special distributable reserve - - (111,992) 111,992 - - -
Cancellation of share capital - (66) - - - - (66)
Profit and total comprehensive income
for the period - - - 368 2,229 2,597
Dividends paid 5 - - (508) - - (508)
Closing equity as at 30 June 2022 1,154 - - 111,484 368 2,229 115,235
The accompanying notes are an integral part of these Interim Financial
Statements.
Condensed Statement of Cash Flows
For the For the
six-month
eight-month
period ended period ended
30 June 2023 30 June 2022
(unaudited) (unaudited)
Notes $'000 $'000
Operating activities cash flows
Profit before taxation 5,383 2,597
Adjustments for:
Movement in fair value of investments 7 (7,304) (2,618)
Foreign exchange gains on operating balances (154) (1,367)
Operating cash flow before movements in working capital (2,075) (1,388)
Changes in working capital:
Increase in trade and other receivables (695) (1,145)
Increase in trade payables 572 788
Net cash flow from operating activities (2,198) (1,745)
Investing activities cash flows
Acquisition of investments (43,490) (25,382)
Net cash flow used in investing activities (43,490) (25,382)
Financing activities cash flows
Dividends paid to shareholders 5 (2,070) (508)
Proceeds from issue of share capital during the period - 115,393
Costs in relation to issue of shares - (2,247)
Net cash flow used in financing activities (2,070) 112,638
Net (decrease)/increase in cash and cash equivalents (47,758) 85,511
Cash and cash equivalents at start of period 115,819 -
Foreign exchange gains on cash or cash equivalents 154 1,370
Cash and Cash equivalents at end of period 68,215 86,881
The accompanying notes are an integral part of these Interim Financial
Statements.
Notes to the Condensed Unaudited Financial Statements
For the period ended 30 June 2023
1. General information
Asian Energy Impact Trust plc ("AEIT" or the "Company") is a public company
limited by Ordinary Shares incorporated in England and Wales on 6 September
2021 with registered number 13605841. The Company changed its name from
ThomasLloyd Energy Impact Trust plc on 27th October 2023. The Company is a
closed-ended investment company with an indefinite life. The Company commenced
its operations on 14 December 2021 when the Company's Ordinary Shares were
admitted to trading on premium segment of the London Stock Exchange's Main
Market (the 'IPO'). The Directors intend, at all times, to conduct the affairs
of the Company as to enable it to qualify as an investment trust for the
purposes of section 1158 of the Corporation Tax Act 2010, as amended.
The registered office and principal place of business of the Company is The
Scalpel, 18th Floor, 52 Lime Street, London, EC3M 7AF, United Kingdom.
The Company's principal activity is to invest in a diversified investment
portfolio of sustainable energy infrastructure assets in fast-growing and
emerging economies in Asia. The Company has a 'Triple Return' investment
objective which consists of: (i) providing shareholders with attractive
dividend growth and prospects for long-term capital appreciation
(the financial return); (ii) protecting natural resources and the environment
(the environmental return); and (iii) 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
delivering on its principal activity.
The interim condensed unaudited financial statements of the Company (the
"Interim Financial Statements") are for the six‑month period ended 30 June
2023 and comprise only the results of the Company, as all of its subsidiaries
are measured at fair value through profit or loss following the amendment to
IFRS 10 as explained below in Note 2. The comparatives shown in these Interim
Financial Statements refer to the eight-month period to 30 June 2022 and as at
31 December 2022.
The Company has appointed Adepa Asset Management S.A to be the alternative
investment fund manager of the Company (the "AIFM") for the purposes of
Directive 2011/61/EU of the European Parliament and of the Council on
Alternative Investment Fund Managers. Accordingly, the AIFM is responsible for
the portfolio management of the Company and for exercising the risk management
function in respect of the Company. The AIFM has delegated portfolio
management services to the Investment Manager.
The AIFM, with the agreement of the Company, has delegated the portfolio
management of the Company to the Investment Manager. For the period from IPO
to 31 October 2023, the Investment Manager was ThomasLloyd Global Asset
Management (Americas) LLC (the "Former Investment Manager"). Under the
relevant investment management agreement between the AIFM, Company and
Investment Manager (the "IMA") the Former Investment Manager was entitled to a
management fee, details of which are included in Note 12 to the Interim
Financial Statements. On 15 September 2023, the Board served notice on the
Former Investment Manager terminating the IMA with effect from 31 October
2023. From 1 November 2023, Octopus Energy Generation ("OEGEN") was appointed
as Transitional Investment Manager to cover an initial period through to 30
April 2024. For this initial term, the Company will pay OEGEN a management fee
of US$1.35 million. At the end of the term, at the discretion of the Board,
there is scope for OEGEN to earn an additional management fee of up to US$0.55
million for its services during the transitional period.
JTC Limited (the "Administrator") provides administrative and company
secretarial services to the Company under the terms of the Administration
Agreement between the Company and the Administrator.
The annual financial statements of the Company for the period ended 31
December 2022 were approved by the Directors on 22 January 2024 and are
available on the Company's website https://www.asianenergyimpact.com/.
2. Basis of preparation
The Interim Financial Statements included in this report have been prepared in
accordance with UK-adopted international accounting standard IAS 34 Interim
Financial Reporting and the applicable requirements of the Companies Act 2006.
The Interim Financial Statements have been prepared under the historical cost
convention, as modified by the revaluation of financial assets and financial
liabilities at fair value through profit or loss.
The Interim Financial Statements have also been prepared as far as is relevant
and applicable to the Company in accordance with the Statement of Recommended
Practice: Financial Statements of Investment Trust Companies and Venture
Capital Trusts ("SORP") issued in July 2022 by the Association of Investment
Companies ("AIC").
The Interim Financial Statements are presented in US Dollar ('US$'), which is
the Company's functional currency and are rounded to the nearest thousand,
unless otherwise stated. The accounting policies, significant judgements, key
assumptions and estimates are consistent with those used in the latest audited
financial statements to 31 December 2022 and should be read in conjunction
with the Company's annual audited financial statements for the year ended
31 December 2022.
Going concern
The Company has undertaken an evaluation of its cashflow forecasts and going
concern position, including downside scenarios. This evaluation demonstrated
that the Company has sufficient cash to meet all of its liabilities within the
going concern assessment period, which is a period of at least 12 months from
the date the Interim Financial Statements were authorised for issue.
In reaching this conclusion, the Directors considered the Company's net assets
as at 30 June 2023 of US$89.9 million, its cash reserves at that date of
US$68.2 million, consequences of the share suspension and its recurring
operating expenditure requirements, both to date and into the future. During
the 6 months ended 31 December 2023, the Company funded the construction of
the RUMS project via a US$20.0 million loan, paid dividends to its
shareholders of US$2.3 million and paid the running costs of the Company. As
at 31 December 2023 the Company had cash reserves of US$41.4 million and AEIT
Holdings had cash reserves of US$1.7 million. This cash position has been used
in assessing the Company's going concern position and cash flow forecasts.
The Company continues to meet Its day-to-day liquidity needs through its cash
resources. Assumed future cash inflows over the going concern period include
the receipt of dividend and interest income from its underlying investments
and the main cash outflows are the ongoing running costs of the Company and
the payment of dividends to its shareholders. A key priority for 2024 for the
Board and Transitional Investment Manager is to undertake capital
restructuring to facilitate the repatriation of cash out of the underlying
investment portfolio. A downside scenario modelled within the cash flows in
the going concern assessment assume this repatriation is delayed until after
the end of the going concern period (i.e. no dividend or interest income is
received from the Company's investments during that period). Even in this
scenario, the Company has sufficient cash reserves to continue as a going
concern. The cash flow forecasts in the downside scenario also assume no
further investment commitments during the going concern period. The Company
had no outstanding investment commitments at 31 December 2023 and at the date
of signing this Interim Report.
The future of the Company relies heavily on the outcome of the current
strategic review of the options for the future of the Company which is
expected to conclude by the end of the first quarter of 2024. At the date of
this Interim Report, based on the information currently available, the most
likely outcome of the strategic review remains a proposal for either the
relaunch of the Company (potentially with a new investment objective,
investment policy, target returns and/or Investment Manager but maintaining
the impact-led, Asian focus) or a managed wind-down. Shareholders will have
the opportunity to vote on the outcome of the strategic review.
The Board does not intend to declare a dividend in respect of the quarter
ended 31 December 2023, nor does it intend to make any further acquisitions or
commitments prior to completion of, the strategic review.
While the Directors therefore have a reasonable expectation that the Company
has adequate resources to continue in operational existence for the
foreseeable future and the going concern basis of accounting has been adopted
in preparing the Interim Financial Statements, the outcome of the strategic
review as set out above is not within the control of the Board and is
therefore uncertain, and will solely be down to a vote of the shareholders,
who may vote for a managed wind up of the Company. In light of this
shareholder vote and that shareholders may vote for a managed wind up of the
Company, there remains a material uncertainty surrounding the Company's future
and in respect of whether it constitutes a going concern.
Critical accounting judgements, estimates and assumptions
The preparation of the Interim Financial Statements requires management to
make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these estimates. Estimates and
underlying assumptions are reviewed regularly on an on-going basis. Revisions
to accounting estimates are recognised in the period in which the estimates
are revised and in any future periods affected. Significant estimates,
judgements and assumptions for the period are set out as follows:
Key sources of estimation uncertainty: fair value estimation for investments
at fair value
The Company's investments at fair value are not traded in active markets. As
such, the fair value of these investments are calculated using discounted cash
flow ("DCF") models based on valuation methods and techniques generally
recognised as standard in the industry, specifically taking into account the
International Private Equity and Venture Capital Valuation Guidelines, which
includes recommendations and best practice.
The DCF models use observable data, to the extent practicable. However, the
key inputs require management to make estimates. The key assumptions used in
the DCF models at 30 June 2023 that the Directors believe would have a
material impact on the fair value of the investments should they change are
set out in Note 7. The key unobservable inputs, and therefore the key sources
of estimation uncertainty, are future power prices, renewable energy
generation, discount rates, inflation rates and the timing of dividends given
some of the investments have capital structures which makes realisation of
dividends more difficult. Sensitivities of the key inputs used in the DCF
models are detailed in Note 7.
As at 30 June 2023, the Company held an investment in SolarArise which owns 6
operational solar farms and 1 under construction asset in India. The asset
under construction is termed the RUMS project.
In preparing the June 2023 valuation of SolarArise, the Board identified a
risk that the fair value of the RUMS project was negative. At the Balance
Sheet date, the valuation of proceeding with the project was estimated to be
negative US$18.8 million on a 100% basis. The Board has considered ways to
mitigate this exposure including aborting the project and not proceeding with
construction. However, termination penalties would arise if the project were
aborted which are estimated to be in the region of US$14.1 million to US$33.4
million (on a 100% basis).
There is therefore significant subjectivity and estimation uncertainty in
determining the fair value of the Company's investment in SolarArise and the
valuation of the RUMS project. In determining the fair value of SolarArise, it
has been determined that the information available as at the Balance Sheet
date would lead the Company to proceed with construction of the RUMS project,
rather than aborting the project, as the least value destructive option.
The sensitivity of this key input is detailed in Note 7. Decreases in solar
module prices as China came out of lockdowns and opened up supply through 2023
is the primary reason why the overall negative NPV of the project has now
fallen. On 11 October 2023, the Board agreed to provide funding of US$20
million by way of an INR denominated external commercial borrowings loan from
the Company to SolarArise to enable construction of the RUMS project to
proceed on the basis that proceeding with the project was now the best option
rather than paying termination penalties. This decision was based on advice
from the Former Investment Manager, who at this time, had valued the RUMS
project at a negative NPV of US$13 million. On 13 December 2023, the Company
announced that the Transitional Investment Manager had valued the RUMS project
at a negative NPV of US$14.6 million as at 30 September 2023.
Critical accounting judgement: equity and loan investments
The Company considers the equity and loan investments to share the same
investment characteristics and risks and they are therefore treated as a
single unit of account for fair value purposes (IFRS 13) and a single class
for financial instrument disclosure purposes (IFRS 9). As a result, the
evaluation of the performance of the Company's investments is done for the
entire portfolio on a fair value basis, as is the reporting to the key
management personnel and to the investors. In this case, all equity,
derivatives and debt investments form part of the same portfolio for which the
performance is evaluated on a fair value basis together and reported to the
key management personnel in its entirety.
Critical accounting judgement: basis of non-consolidation
The Company has adopted the amendments to IFRS 10 which states that investment
entities should measure all of their subsidiaries that are themselves
investment entities at fair value (in accordance with IFRS 9 Financial
Instruments: Recognition and Measurement, and IFRS 13 Fair Value Measurement).
Under the definition of an investment entity, the Company should satisfy all
three of the following tests:
i. the Company obtains funds from one or more investors for the purpose
of providing those investors with investment management services;
ii. the Company commits to its investors that its business purpose is to
invest funds solely for returns from capital appreciation, investment income,
or both; and
iii. the Company measures and evaluates the performance of substantially
all of its investments on a fair value basis.
In assessing whether the Company meet the definition of an investment entity
set out in IFRS 10 the Directors note that:
i. the Company has multiple investors and obtains funds from a diverse
group of shareholders who would otherwise not have access individually to
invest in renewable energy infrastructure investments due to high barriers to
entry and capital requirements;
ii. the Company intends to hold its investments for the remainder of
their useful lives for the purpose of capital appreciation and investment
income in line with the Company's stated strategy and the Directors believe
the Company is able to generate returns to the investors during that
period(22); and
iii. the Company measures and evaluates the performance of all of its
investments on a fair value basis which is the most relevant for investors in
the Company. Management use fair value information as a primary measurement to
evaluate the performance of all of the investments and in decision making.
(22) Directors will be putting forward proposals for the
reconstruction and reorganisation of the Company to shareholders. Included
within these proposals will be a managed wind-down of the Company.
Shareholders will be given the option to vote on their preferred proposal.
The Directors are of the opinion that the Company meets all the typical
characteristics of an investment entity and therefore meets the definition set
out in IFRS 10. The Directors are satisfied that investment entity accounting
treatment appropriately reflects the Company's activities as an investment
trust.
Critical accounting judgement: functional currency
The Directors consider that the US Dollar is the currency that most faithfully
represents the economic effect of the underlying transactions, events and
conditions that impact the Company.
The Company's ordinary share capital is issued in US Dollars. The primary
activity of the Company is to invest in unlisted debt and equity securities
issued by companies involved in the construction or operation of sustainable
renewable energy infrastructure assets in fast-growing and emerging economies
in Asia. Although these unlisted debt and equity securities are held in their
local currencies, the fair value associated with each investment held is
converted into US Dollars at the prevailing spot exchange rate at the
valuation date for presentation within the Company's results. The US Dollar is
the currency in which the Company measures its performance and reports its
results, as well as the principal currency in which it receives subscriptions
from its investors.
The functional currency assessment also considers the cost structure of the
Company and the currencies in which it may pay dividends and receive income.
The majority of operating expenses are denominated in US Dollars and the
Company announces dividend payments in US Dollars (although it may also settle
in currencies other than US Dollars). It is expected that the Company will
receive dividend income in currencies other than US Dollars, although it may
enter into a hedging programme to mitigate against future volatility in those
currencies in comparison to US Dollars.
The functional currency assessment is reviewed periodically in light of
investments made and to be made.
3. Operating expenses
For the period ended 30 June 2023 For the period ended 30 June 2022
(unaudited)
(unaudited)
Revenue Capital Total Revenue Capital Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Administration fees 87 - 87 72 - 72
AIFM fees 38 - 38 41 - 41
Legal and professional fees 1,149 - 1,149 111 - 111
Transaction costs - - - - - -
Compliance and Regulatory fees 50 - 50 - - -
Directors' fees 131 - 131 149 - 149
Valuation Fees 168 - 168 - - -
Company's audit and non-audit fees:
- in respect of audit services 83 - 83 113 - 113
- in respect of non-audit related - - - - - -
services
Other operating expenses 57 - 57 124 - 124
1,763 - 1,763 610 - 610
For the period For the period
ended 30 June ended 30 June
2023 2022
Total US$'000 Total US$'000
Analysed as:
Ongoing and recurring costs of the Company 616 610
Other one-off costs following the temporary share suspension 1,147 ‒
Total 1,763 610
The Company has no employees. Full detail on Directors' fees is provided in
note 12. The Directors' fees exclude employer's national insurance
contribution which is included as appropriate in other operating expenses.
There were no other emoluments.
4. Taxation
(a) Analysis of charge/(credit) in the period
For the six-month period ended For the period ended
30 June 2023 (unaudited)
30 June 2022 (unaudited)
Revenue Capital Total Revenue Capital Total
$'000 $'000 $'000 $'000 $'000 $'000
Corporation tax - - - - - -
Tax charge / (credit) for the period - - - - - -
(b) Factors affecting total tax charge for the period:
The effective UK corporation tax rate applicable to the Company for the period
is 22% (2022: 19%). The tax charge/(credit) differs from the charge/(credit)
resulting from applying the standard rate of UK corporation tax for an
investment trust company. The differences are explained below:
For the period ended For the period ended
30 June 2023 (unaudited)
30 June 2022 (unaudited)
Revenue Capital Total Revenue Capital Total
$'000 $'000 $'000 $'000 $'000 $'000
Loss before taxation (1,765) 7,148 5,383 368 2,229 2,597
Corporation tax at 22%/19% (388) 1,572 1,184 70 423 493
Effects of:
Non-taxable capital gains - (1,607) (1,607) - (497) (497)
Unutilised losses carried forward 388 35 423 (70) 74 4
Total tax charge/(credit) for the period - - - - - -
The Directors are of the opinion that the Company has complied with the
requirements for maintaining investment trust status for the purposes of
section 1158 of the Corporation Tax Act 2010. This allows certain capital
profits of the Company to be exempt from UK tax. Additionally, the Company may
designate dividends payable wholly or partly as interest distributions for UK
tax purposes. Interest distributions are treated as tax deductions against
taxable income of the Company so that investors do not suffer double taxation
on their returns.
The Interim Financial Statements do not directly include the tax charges for
any of the Company's subsidiaries as these are held at fair value. Each of
these companies are subject to taxes in the countries in which they operate.
5. Dividends
For the period ended For the period ended
30 June 2023
30 June 2022
(unaudited)
(unaudited)
Cents per Total Cents per Total
Ordinary Share $'000 Ordinary Share $'000
Q1 2022 dividend - paid on 24 June 2022 - - 0.44 508
Q4 2022 dividend - paid on 23 May 2023 1.18 2,070 - -
Total 1.18 2,070 0.44 508
On 6 June 2023, the Company declared an interim dividend in respect of the
period from 1 January 2023 to 31 March 2023 of 0.44 cents per share, paid on
19 July 2023 to shareholders on the register at 16 June 2023. On that record
date, the number of shares in issue was 175,684,705 and the total dividend
paid to shareholders amounted to US$0.8 million. This dividend has not been
included as a liability at 30 June 2023.
On 10 August 2023, the Company declared an interim dividend in respect of the
period from 1 April 2023 to 30 June 2023 of 0.44 cents per share, paid on 11
September 2023 to shareholders on the register at 18 August 2023. On that
record date, the number of shares in issue was 175,684,705 and the total
dividend paid to shareholders amounted to US$0.8 million. This dividend has
not been included as a liability at 30 June 2023.
On 8 November 2023, the Company declared an interim dividend in respect of the
period from 1 July 2023 to 30 September 2023 of 0.44 cents per share, paid on
11 December 2023 to shareholders on the register at 17 November 2023. On that
record date, the number of shares in issue was 175,684,705 and the total
dividend paid to shareholders amounted to US$0.8 million. This dividend has
not been included as a liability at 30 June 2023.
6. Earnings per ordinary share
Earnings per ordinary share is calculated by dividing the profit attributable
to equity shareholders of the Company by the weighted average number of
ordinary shares in issue during the period as follows.
For the six-month period ended For the period ended
30 June 2023 (unaudited)
30 June 2022 (unaudited)
Revenue Capital Total Revenue Capital Total
(Loss)/profit attributable to the equity holders of the Company (US$'000) (1,765) 7,148 5,383 368 2,229 2,597
Weighted average number of ordinary shares in issue (000) 174,685 174,685 174,685 94,024 94,024 94,024
Earnings/(loss) per ordinary share (cents) - basic and diluted (1.01) 4.09 3.08 0.39 2.37 2.76
7. Investments at fair value through profit or loss
As set out in note 2, the Company accounts for its interest in its wholly
owned direct subsidiaries as an investment at fair value through profit or
loss.
a) Reconciliation of movement in fair value of portfolio of assets
The table below shows the movement in the fair value of the Company's
investments. The Company accounts for its interest in its wholly owned direct
subsidiaries as an investment at fair value through profit or loss.
As at As at
30 June 2023 31 December
(unaudited) 2022 (audited)
$'000 $'000
Opening balance 11,491 -
Portfolio of assets acquired 43,490 58,484
Onerous contract provision utilised during the period (38,500) -
Movement in fair value 5,609 (46,993)
Fair value of portfolio of assets at the end of the period 22,090 11,491
Cash held in AEIT Holdings 1,824 -
Fair value of other net assets in AEIT Holdings (129) -
Fair value of Company's investments at the end of the period 23,875 11,491
b) Investment losses in the period
For the period For the period to
to 30 June 2023 31 December
(unaudited) 2022 (audited)
$'000 $'000
Movement in fair value of investments 7,304 (46,993)
Fair value of the investment portfolio
The Transitional Investment Manager has carried out a fair market valuation of
the investments as at 30 June 2023. These valuations have been reviewed by the
Company's independent valuation expert, PwC.
The Directors have satisfied themselves as to the methodology used, the
discount rates applied and the valuation. All investments are in renewable
energy assets and are valued using a DCF methodology.
The key assumptions used in the DCF models at 30 June 2023 that the Directors
believe would have a material impact on the fair value of the investments
should they change are set out in the table below. The key and most material
unobservable inputs, and therefore the key sources of estimation uncertainty,
are future power prices, renewable energy generation, discount rates and
inflation rates. The table below also includes other assumptions which the
Investment Manager consider to be key to the valuation of each investment.
Key assumption Philippines India Description
Power prices Forecast WESM23 prices are based on a blend of two wholesale energy price Fixed price PPA All assets in the Indian portfolio have long-term fixed price power purchase
curves as prepared by independent market advisors that are reputable in these agreements and therefore market forecasts are not required. The Philippine
markets. portfolio generates revenue through the sale of power to the grid at the
wholesale electricity market price and is fully exposed to volatility in
wholesale energy price curves.
Energy generation P50 P50 Electricity output is based on specifically commissioned yield assessments
prepared by technical advisors. Each asset's valuation assumes a 'P50' level
of electricity output, which is the estimated annual amount of electricity
generation that has a 50% probability of being exceeded - both in any single
year and over the long-term - and a 50% probability of being underachieved.
The P50 provides an expected level of generation over the long-term. A 3-5%
'haircut' has been applied to the current P50 yields in the models based on
historical underperformance.
Discount rate The discount rate used in each DCF model reflects the current market
assessment of the time value of money and the risks specific to each
investment. Key inputs to the discount rates have been verified by PwC, the
independent valuation expert.
The discount rate used in the DCF for these assets are between the ranges of
11.5% - 12.5%.
FX rate US$1:PHP 55.359 US$1:INR 82.096 Underlying valuations are calculated in local currency and converted back to
USD at the spot rate at the relevant valuation date.
Inflation CPI trends downwards to a long‑term inflation rate assumption of 3%. The India CPI forecasts trend downwards in the near term to a long-term inflation Inflation assumptions used in the model are a blend of a leading market
Bangko Sentral ng Pilipinas (central bank of the Philippines) target inflation rate assumption of 4.2%. This is in line with the Reserve Bank of India target forecaster with International Monetary Fund (IMF) CPI forecasts for all
range is 2% to 4%. inflation range of 2% to 6%. invested markets as at 31 December 2022.
Capital structure Capital reduction effective on 30 June 2024 Capital reduction effective on 30 June 2024 The current structure of each of these investments is not optimal for cash
extraction.
The DCF models assume a degree of capital restructuring for each investment to
enable cash to be extracted more efficiently. Any delay to these restructuring
plans may delay the ability of the Company to extract cash out of its
underlying investments.
23 Philippine Wholesale Electricity Spot Market.
The fair value of the Vietnam assets are deemed to be equal to cost, given the
close proximity of the acquisition to the period end. As such, the
Transitional Investment Manager has not prepared a DCF for these assets as at
30 June 2023.
RUMS Project
Within the SolarArise portfolio is a 200 MW asset under construction (the
"RUMS project") held through a separate subsidiary. As at 31 December 2022, an
abort liability of US$27.9 million was recognised (based on 100% ownership) in
relation to the RUMS project.
Falling solar module prices over the 6 months to June 2023 has resulted in
improving economics for the project. Updating the model with the declining
panel prices and other assumption changes reduced the overall negative NPV. As
at 30 June 2023, the fair value of the RUMS project included within the
valuation of SolarArise was negative US$18.8 million, excluding the paid in
capital as at 30 June 2023 of US$7 million. As this is less than the US$27.9
million assumed abort liabilities, the RUMS project is valued on a proceed
basis.
Post period end, following a continuing decrease in panel prices and
reevaluation of the project, the Board decided that proceeding with the
project represented the least value destructive option for the Company. As at
30th September 2023, the valuation of the RUMS project was a negative NPV of
US$14.6 million. This excludes the paid in capital to date of US$10.1 million.
SolarArise Acquisition of 57% Holding
On 20 June 2022 the Company made a commitment to purchase the remaining 57% of
SolarArise for a total consideration of US$38.5 million. As at 31 December
2022, the Company had identified an onerous contract and recognised a
provision of US$38.5 million in respect of this commitment as on completion of
the acquisition in 2023, a fair value loss was recorded which was lower than
the consideration paid to acquire this 57% investment, primarily due to
termination penalties relating to the RUMS project.
Completion of the purchase of 57% of SolarArise occurred on 13 January 2023
and it is at this date on which the provision was utilised.
AEIT Holdings Limited
On 5 May 2022, the Company incorporated a wholly owned subsidiary, AEIT
Holdings Limited, a private company, limited by ordinary shares. AEIT
Holdings' principal activity is to act as an investment holding company and it
is intended that the Company will acquire its future investments directly
through AEIT Holdings. At 30 June 2023, AEIT Holdings directly held the
investment in VSS. During the period, the Company invested cash of US$5.0
million into AEIT Holding. AEIT Holdings utilised the cash to acquired a 99.8%
holding in VSS on 31 May 2023 for total consideration of US$3.1 million. The
other assets and liabilities of AEIT are disclosed in the table within Note
7(a) above, which primarily relate to cash at the Balance Sheet date.
Valuation Sensitivities
The following table presents the results and impact of the sensitivity
analysis completed on the key inputs used in the DCF models. The sensitivities
assume that the relevant input is changed over the entire useful life of each
of the underlying renewable energy investments, while all other variables
remain constant. All sensitivities have been calculated independently of each
other. Each of these sensitivities have been assessed as reasonably possible
based on actual changes seen over the year.
The Directors have assessed the sensitivity applied to each of the significant
unobservable inputs and believe that each sensitivity represents a reasonable
possible long-term movement in the significant unobservable input to which it
relates, notwithstanding the significant short-term movements that have
occurred in the period in relation to Philippine wholesale power prices,
foreign exchange, inflation rates and government bonds yields due to the
recent energy market disruption caused by the ongoing Ukraine-Russia war.
While the Directors believe the changes in inputs calculated to be within a
reasonable expected range based on their understanding of market transactions,
this is not intended to imply the likelihood of change or that possible
changes in value would be restricted to the range considered. Sensitivity
analysis is not reflected in respect of Vietnamese assets, since these are
held at cost as at 30 June 2023.
Significant Relationship to fair value Fair value Impact of sensitivity Fair value NAV NAV
unobservable input increase (decrease) per share per share
increase (decrease)
Power prices Power price sensitivities have only been applied to investments whose US$6.5 Million US$(6.6) million 3.7 Cents (3.8) Cents
underlying assets are exposed to merchant prices (i.e. revenue streams which
are not tied to a fixed-price PPA). An increase in forecasted power prices
used for these revenue streams would result in an increase in fair value.
Sensitivity: +/- 25%
Renewable energy generation An increase in generation would result in an increase in fair value. US$16.8 million US$(18.0) million 9.6 cents (10.3) cents
Sensitivity: +/- 10%
Discount rate A decrease in the discount rate used would result in an increase in fair US$2.7 million US$(2.5) million 1.6 cents (1.4) cents
value.
Sensitivity: -/+ 1%
Foreign exchange rate Deflation of the local currencies in which the investments are held against US$2.0 million US$(1.6) million 1.1 cents (0.9) cents
the US Dollar would result in an increase in fair value.
Sensitivity: -/+ 10%
Cost inflation A decrease in the inflation rate used would result in an increase in fair US$0.1 million US$(0.3) million 0.1 cents (0.1) cents
value.
Sensitivity: -/+ 1%
Cash extraction As at 30 June 2023, NISPI, the SolarArise holding company and each of the - US$(1.8) million - (1.0) cents
SolarArise SPVs have significant negative distributable reserve balances,
prohibiting the payment of dividends. The updated valuations have been updated
to reflect this but assume that some measures to eliminate cash traps within a
reasonable timeframe are implemented for example, capital reductions. The
sensitivity assumes that such measures to eliminate cash traps are delayed by
c. 12 months at both NISPI and SolarArise.
Sensitivity: Delay to assumed capital reductions +12 months
8. Share capital
Allotted, issued and fully paid: Number of ordinary Share Share Number of preference Preference share
capital
premium
shares
shares capital
US$'000 US$'000
US$'000
At 31 October 2021 1 - - 50,000 66
Issue of shares at IPO (14 December 2021) 115,393,127 1,154 114,239 - -
Cancellation of preference shares (22 March 2022) - - - (50,000) (66)
Subsequent issue of shares (16 August 2022) 26,014,349 260 29,926 - -
Subsequent issue of shares (16 November 2022) 34,277,228 343 34,963 - -
Share issue costs - - (3,618) - -
Transfer to special distributable reserve - - (111,992) - -
Closing balance 31 December 2022 and 30 June 2023 175,684,705 1,757 63,518 - -
On 14 December 2021, at IPO, the Company issued 115,393,127 ordinary shares of
US$0.01 each, at a price of US$1.00 per ordinary share, raising gross proceeds
of US$115.4 million.
On 22 March 2022, the Company effected a capital reduction process which
included the cancellation of the 50,000 preference shares and the related
reduction of an amount receivable from related parties of US$66,000 and the
reduction of the share premium reserve and related transfer to the special
distributable reserve of US$111,992,000.
On 16 August 2022, the Company issued 26,014,349 ordinary shares of US$0.01
each in consideration for the 43% economic interest in SolarArise. SolarArise
forms part of the seed assets of the IPO, with the consideration shares
forming part of the gross IPO proceeds. The shares were issued at a price of
US$1.16035 per share that was based on the 10-day average share price prior to
allotment of the shares.
On 16 November 2022, pursuant to the subsequent placing programme, the Company
issued 34,277,228 ordinary shares of US$0.01 each at a price of US$1.030 per
ordinary share, raising gross proceeds of US$35.3 million. The shares were
subsequently issued on 18 November 2022.
Expenses incurred of US$3.6 million were determined to be directly
attributable to the equity transactions and that would have otherwise been
avoided if the shares had not been issued. These expenses include broker fees
and commissions, sponsor fees, amounts paid to lawyers, accountants and other
professional advisors in relation to the IPO and the subsequent placing
programme. Such expenses have been recognised directly in share premium.
9. Special distributable reserve
In March 2022, the Company was granted court approval for a capital reduction
process to cancel US$112.0 million of share premium which was transferred to
the special distributable reserve. During the period, the Company paid
dividends of US$2.1 million from this reserve. At 30 June 2023, the special
distributable reserve was US$108.0 million and is fully distributable.
10. Net assets per ordinary share (cents)
As at As at
30 June 2023 31 December 2022
(unaudited) (audited)
Total shareholders' equity ($'000) 89,893 86,580
Number of ordinary shares in issue ('000) 175,685 175,685
Net asset value per ordinary share (cents) 51.17 49.28
11. Financial instruments by category
The Company held the following financial instruments at fair value at 30 June
2023. There have been no transfers of financial instruments between levels of
the fair value hierarchy. There are no non-recurring fair value measurements.
As at 30 June 2023 (unaudited)
Financial Financial
assets at fair liabilities at
Financial assets at value through amortised
amortised cost profit or loss cost Total
US$'000 US$'000 US$'000 US$'000
Non-current assets
Investments at fair value through profit or loss - 23,875 - 23,875
Current assets
Cash and cash equivalents 68,215 - - 68,215
Total assets 68,215 23,875 - 92,090
Current liabilities
Trade payables - - (1,312) (1,312)
Total liabilities - - (1,312) (1,312)
Net assets 68,215 23,875 (1,312) 90,778
As at 31 December 2022 (audited)
Financial Financial
assets at fair liabilities at
Financial assets at value through amortised
amortised cost profit or loss cost Total
US$'000 US$'000 US$'000 US$'000
Non-current assets
Investments at fair value through profit or loss - 11,491 - 11,491
Current assets
Cash and cash equivalents 115,819 - - 115,819
Total assets 115,819 11,491 - 127,310
Current liabilities
Trade payables - - (350) (350)
Total liabilities - - (350) (350)
Net assets 115,819 11,491 (350) 126,960
Financial instruments are held at carrying value as an approximation to fair
value unless stated otherwise.
IFRS 13 requires the Company to classify its investments in a fair value
hierarchy that reflects the significance of the inputs used in making the
measurements. IFRS 13 establishes a fair value hierarchy that prioritises the
inputs to valuation techniques used to measure fair value. The three levels of
fair value hierarchy under IFRS 13 are as follows:
Level 1: fair value measurements are those derived from quoted prices Level 2: fair value measurements are those derived from inputs other than Level 3: fair value measurements are those derived from valuation techniques
(unadjusted) in active markets for identical assets or liabilities; quoted prices included within Level 1 that are observable for the asset or that include inputs to the asset or liability that are not based on observable
liability, either directly (i.e., as prices) or indirectly (i.e., derived from market data (unobservable inputs).
prices); and
As at 30 June 2023 As at 31 December 2022
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Financial assets
Investments at fair value through - - 23,875 23,875 - - 11,491 11,491
profit or loss
Total financial assets - - 23,875 23,875 - - 11,491 11,491
There were no Level 1 or Level 2 assets or liabilities during the period.
There were no transfers between Level 1 and 2, Level 1 and 3 or Level 2 and 3
during the period.
Reconciliation of Level 3 fair value measurement of financial assets and
liabilities
An analysis of the movement between opening to closing balances of the
investments at fair value through profit or loss is given in note 7.
The fair value of the investments at fair value through profit or loss
includes the use of Level 3 inputs. Refer to note 7 for details on the
valuation methodology.
12. Related party and key advisor transactions
AIFM
The Company is classified as an Alternative Investment Fund under the EU
Alternative Investment Fund Managers' Directive as incorporated into UK law
(the "AIFMD") and is, therefore, required to have an AIFM. The Company's AIFM
is Adepa Asset Management S.A.
The AIFM is entitled to an annual management fee at the following rates, based
on the NAV and payable quarterly in arrears:
Fee based on NAV
Up to US$200 million 0.055%
Between US&200-400 million 0.045%
Between US&400-1,000 million 0.035%
Above US$1 billion 0.025%
The AIFM is also entitled to an annual risk management fee of EUR14,500.
For the period ended 30 June 2023, the AIFM was entitled to management fees of
US$38,915. Of this total, US$20,191 remained outstanding at the Balance Sheet
date and was included in payables.
Investment Manager
The AIFM, with the agreement of the Company, has delegated the portfolio
management of the Company to the Investment Manager. For the period from IPO
to 31 October 2023, the Investment Manager was ThomasLloyd Global Asset
Management (Americas) LLC (the "Former Investment Manager").
Management fees are payable quarterly in arrears and are calculated at the
following rates, based on the NAV on the last business day of the relevant
quarter:
Fee based on NAV
Up to US$700 million 1.3%
US$700 million to US$2.0 billion 1.1%
Over US$2.0 billion 1.0%
For the period ended 30 June 2023, the Former Investment Manager was entitled
to management fees of US$0.3 million. Of this total, the whole amount remained
outstanding at the Balance Sheet date and was included in amounts payable to
related parties.
The Investment Management Agreement between the AIFM, Company and Investment
Manager (the "IMA") was terminated post period end with effect from 31 October
2023. From 1 November 2023, Octopus Energy Generation were appointed as
Transitional Investment Manager to cover an initial period through to 30 April
2024.
Directors
The Company has four non-executive Directors. Total Directors' fees of
US$89,550, with associated payroll taxes of US$41,352, have been incurred
during the period.
The Directors had the following shareholdings in the Company, all of which
were beneficially owned.
Ordinary Shares Ordinary Shares
as at date of this as at 30 June
report 2023
Sue Inglis 65,000 65,000
Kirstine Damkjær - -
Mukesh Rajani 33,000 33,000
Clifford Tompsett 33,000 33,000
13. Subsidiaries, joint ventures and associates
As a result of applying Investment Entities (Amendments to IFRS 10, IFRS 12
and IAS 27), no subsidiaries have been consolidated in these Interim Financial
Statements. The Company's subsidiaries are listed below:
Place of Registered Ownership
Name Category business Office* interest
AEIT Holdings Limited Intermediate Holdings UK A 100%
Negros Island Solar Power Inc. ("NISPI") Project company Philippines B 34%(24)
SolarArise India Projects Private Ltd ("SolarArise") Intermediate Holdings India C 100%
Talettutayi Solar Projects Private Limited Project company India D 100%
Talettutayi Solar Projects One Private Limited Project company India D 100%
Talettutayi Solar Projects Two Private Limited Project company India D 100%
Talettutayi Solar Projects Four Private Limited Project company India D 100%
Talettutayi Solar Projects Five Private Limited Project company India D 100%
Talettutayi Solar Projects Six Private Limited Project company India D 100%
Talettutayi Solar Projects Eight Private Limited Project company India D 100%
Talettutayi Solar Projects Nine Private Limited Project company India D 100%
Talettutayi Solar Projects Ten Private Limited Project company India D 100%
Viet Solar System Company Limited ("VSS") Intermediate Holdings and project company Vietnam E 99.8%
VSS Ba Ria Co., Ltd Project company Vietnam E 99.8%
VSS Vung Tau Co., Ltd Project company Vietnam E 99.8%
Vtech Chau Duc Co., Ltd Project company Vietnam E 99.8%
Vtech Vung Tau Co., Ltd Project company Vietnam E 99.8%
(24) The Company's economic interest in NISPI is 40%.
* Registered offices:
A - The Scalpel, 18th Floor, 52 Lime Street, London, EC3M 7AF,
United Kingdom
B - Emerald Arcade, F.e. Ledesma 8t., San Carlos, Negros Island,
Philippines
C - A-39, LGF, Lajpat Nagar, Part-1 New Delhi-110024, India.
D - Unit No. 1004, 10th Floor, BPTP Park Centra, Sector 30, NH-8,
Gurugram-122001, Haryana, India.
E - Lot 21, Road D.02, Chau Duc Industrial Area, Quang Tay Hamlet,
Nghia Thanh Commune, Chau Duc District, Ba Ria - Vung Tau Province, Vietnam
As at 31 December 2022, investments into AEIT Holdings, NISPI, SolarArise and
VSS were held directly. All other subsidiaries were held indirectly.
14. Guarantees and other commitments
As at 30 June 2023, the Company has no financial guarantees or other
commitments into which it has entered.
15. Post period end events
On 10 August 2023 the Company declared an interim dividend for the period from
1 April 2023 to 30 June 2023 of 0.44 cents per ordinary share. The dividend
was paid on 11 September 2023 to shareholders on the register on 18 August
2023.
As detailed in the Interim Report, on 15 September 2023, the Board served
notice on the Investment Manager terminating the IMA with effect from 31
October 2023. From 1 November 2023, Octopus Energy Generation ("OEGEN") was
appointed as Transitional Investment Manager to cover an initial period
through to 30 April 2024. For this initial term, the Company will pay OEGEN a
management fee of US$1.35 million. At the end of the term, at the discretion
of the Board, there is scope for OEGEN to earn an additional management fee of
up to US$0.55 million for its services during the initial period.
On 11 October 2023 the Board announced its decision to proceed with the RUMS
project due to it being the least value destructive option for shareholders.
This was based on the advice received from the Former Investment Manager as
detailed in the Interim Report. To proceed with the RUMS project, the Board
put forward an amendment to the Company's investment policy with regard to the
single country limit which was passed on 31 October 2023. Please see the
Interim Report for further information.
On 27 October 2023, the Company changed its name to Asian Energy Impact Trust
plc. with a new corporate website launched on 1 November 23
https://www.asianenergyimpact.com/.
On 8 November 2023 the Company declared an interim dividend for the period
from 1 July 2023 to 30 September 2023 of 0.44 cents per ordinary share. The
dividend was paid on 11 December 2023 to shareholders on the register on
17 November 2023.
On 13 December 2023, the Company announced its unaudited NAV at 30 September
2023 is US$88.5 million (50.4 cents per share). As at 30 September 2023, the
value of the SolarArise portfolio increased from US$9.7 million as at 30 June
2023 to US$11.3 million and included a negative NPV associated with completing
the RUMS project of US$14.6 million. The reduction in the negative NPV
associated with completing the RUMS project is due to a reduction in the price
of solar panels through 2023, primarily due China opening up from lockdowns
and therefore an increase in solar panel supply.
16. Status of this report
These Interim Financial Statements are not the Company's statutory accounts
for the purposes of section 434 of the Companies Act 2006. They are unaudited.
The unaudited interim financial report will be made available to the public at
the registered office of the Company.
The report will also be available in electronic format on the Company's
website, https://www.asianenergyimpact.com/
The interim financial report was approved by the Board of Directors on 22
January 2024.
Other Information
Alternative Performance Measures
In reporting financial information, the Company presents alternative
performance measures ("APMs") which are not defined or specified under the
requirements of IFRS. The Company believes that these APMs, which are not
considered to be a substitute for or superior to IFRS measures, provide
stakeholders with additional helpful information on the performance of the
Company.
The APMs presented in this report are shown below:
NAV per share
A measure of the value of the Company attributable to each share, at the
reporting date. The calculation of NAV per share is shown in Note 10 to the
financial statements.
NAV total return
A measure of success of the Company's investment strategy. The NAV total
return per share includes both income and capital returns by taking into
account any increase or decrease in the NAV per share over the reporting
period and assuming that dividends paid to shareholders during the reporting
period are reinvested at the NAV per share on the ex-dividend date.
Jun-23 Dec-22
Cents Cents
NAV per share at IPO a 98.00 98.00
NAV per share at period end b 51.17 49.28
Dividends paid in the period c 2.94 1.32
Benefits of reinvesting dividends d (1.95) (0.80)
Total return ((b+c+d)÷a)-1 -46.8% -49.2%
GAV, Adjusted GAV and Gearing
GAV is measure of the total size of the Company and is the total value of the
assets of the Company, being the aggregate of aggregate of the fair value of
its investment portfolio and any cash and cash equivalents. Leverage is not
employed at the Company level but may be employed within investment portfolio.
Adjusted GAV is a measure of the total size of the Company, including, on a
look through basis, its proportionate share of any leverage within its
investment portfolio, and forms the basis on which the gearing restriction in
the Company's investment policy is calculated. Gearing is a measure of the
potential financial risk to which the Company is exposed and is its
proportionate share of any leverage within its investment portfolio expressed
as a percentage of Adjusted GAV.
Jun-23 Dec-22
US$ m US$ m
Investments at fair value through profit or loss a 23.9 11.5
Cash held at the Company b 68.2 115.8
GAV a+b=c 92.1 127.3
Debt held in underlying investments d 108.2 45.9
Adjusted GAV c+d=e 200.3 173.3
Gearing d/e 54% 27%
Net operational asset value
The value of the Company's operational asset investments, excluding
construction projects. Provides a measure of the value of the investment
portfolio that is revenue generating and will make a positive contribution to
the Company's dividend cover.
Jun-23 Dec-22
US$ m US$ m
Investments at fair value through profit or loss a 23.9 11.5
NPV of RUMS project b (18.8) (12.0)
Net operational asset value a-b 42.7 23.5
Glossary
Adjusted GAV GAV plus the Company's proportionate share of asset level debt
AIC Association of Investment Companies
AIFM Alternative Investment Fund Manager
AIFM Directive The EU Alternative Investment Fund Managers Directive (No. 2011/61/EU)
APM Alternative performance measures
CO(2) Carbon dioxide
Company or AEIT Asian Energy Impact Trust plc
DCF Discounted Cash Flow
DTR Disclosure Guidance and Transparency Rules
Group the Company along with all its subsidiaries (as disclosed in note 13)
ESG Environmental, social and governance
EU European Union
FCA Financial Conduct Authority
FCDO Foreign, Commonwealth and Development Office of the UK Government
Former Investment Manager or ThomasLloyd Group ThomasLloyd Global Asset Management (Americas) LLC
FRC Financial Reporting Council
FTE Full time equivalent
GAV Gross Asset Value
GW Gigawatt
IPO The Company's initial public offering which completed on 14 December 2021,
when its shares were admitted to trading on the London Stock Exchange
INR Indian Rupee
KPI Key performance indicators
LSE London Stock Exchange plc
MW Megawatt
MWp Megawatts of electricity generated in the form of direct current at peak
capacity
NAV Net asset value
NISPI Negros Island Solar Power Inc
NSM National Storage Mechanism
OCR Ongoing charges ratio
O&M Operations and maintenance
PHP Philippine Peso
PPA Power purchase agreement
SDGs Sustainable Development Goals
SFDR Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27
November 2019 on sustainability-related disclosures in the financial services
sector
SolarArise SolarArise India Projects Private Limited and its subsidiaries
SORP Statement of Recommended Practice
SPV Special purpose vehicle
TCFD Task Force on Climate-related Financial Disclosures
Temporary share suspension The temporary suspension in the listing of, and trading in, the Company's
shares, at the request of the Company due to a material uncertainty regarding
the fair value of its assets and liabilities, with effect from 25 April 2023.
tCO(2)e The number of metric tonnes of CO(2) emissions with the same global warming
potential as one metric ton of another greenhouse gas
Transitional Investment Manager or OEGEN Octopus Renewables Limited (trading as Octopus Energy Generation)
VSS Viet Solar System Company Limited and its subsidiaries
WESM Philippine wholesale electricity spot market
Company Information
Registered Office
The Scalpel, 18th Floor
52 Lime Street
London, EC3M 7AF
United Kingdom
Registered number: 13605841
LEI: 254900V23329JCBR9G82
Website: https://www.asianenergyimpact.com/
Directors
Sue Inglis (Chair)
Kirstine Damkjær
Mukesh Rajani
Clifford Tompsett
(All non-executive and independent)
Former Investment Manager (until 31/10/2023)
ThomasLloyd Global Asset Management (Americas) LLC
427 Bedford Road
Pleasantville
New York 10570
United States of America
AIFM
Adepa Asset Management S.A.
R.C. B0114721
6A, Rue Gabriel Lippmann
L-5365 Schuttrange-Munsbach
Grand Duchy of Luxembourg
Transitional Investment Manager (from 1/11/2023)
Octopus Renewables Limited (trading as Octopus Energy Generation)
UK House 5th Floor
164-182 Oxford Street
London W1D 1NN
United Kingdom
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol, BS13 8AE
United Kingdom
Administrator and Company Secretary
JTC (UK) Limited
The Scalpel, 18th Floor
52 Lime Street
London,
EC3M 7AF
United Kingdom
Independent Auditor
Deloitte LLP
1 New Street Square
London,
EC4A 3HQ
United Kingdom
Independent Valuation Expert
PricewaterhouseCoopers LLP
7 More London Riverside,
London
SE1 2RT
United Kingdom
Joint Corporate Broker
Peel Hunt LLP
100 Liverpool Street,
London
EC2M 2AT
United Kingdom
Sponsor and Joint Corporate Broker
Shore Capital and Corporate Limited
Cassini House
57-58 St. James's Street
London, SW1A 1LD
United Kingdom
Depositary
INDOS Financial Limited
54 Fenchurch Street
London, EC3M 3JY
United Kingdom
Legal Advisor
Stephenson Harwood LLP
1 Finsbury Circus
London, EC2M 7SH
United Kingdom
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