REG - Asian Energy Impact Asian Energy - AEIT Asian Energy - AEIP - Company Update

Asian Energy Impact TrustAnnouncement

14/06/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240614:nRSN3995Sa&default-theme=true

RNS Number : 3995S  Asian Energy Impact Trust PLC  14 June 2024

LEI: 254900V23329JCBR9G82

 

14 June 2024

Asian Energy Impact Trust plc

(the "Company" or "AEIT")

COMPANY UPDATE

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 a Company update ahead of the General
Meeting on Friday, 14 June 2024 (the "General Meeting") at which shareholders
will be asked to vote on a resolution to wind-up the Company (the
"Resolution").

CONSTRUCTION UPDATE

Construction of the 200MW solar project that forms part of the Rewa Ultra Mega
Solar Park (the "RUMS project") within the SolarArise India Projects Private
Limited ("SolarArise") portfolio commenced in November 2023. As previously
announced, the expected date to commence commissioning is late June 2024 and
the planned additional funding of US$4.5 million has been injected into the
project.

This commissioning date remains wholly dependent on the landowner of the Rewa
Ultra Mega Solar Park ("RUMSL 1  (#_ftn1) ") finishing the construction of the
transmission line and other infrastructure required for commissioning which is
not yet complete. Following initial commissioning, there will be a ramp-up
period, following which full operational revenues are expected. Based on the
latest estimates, there is forecast to be a short-term working capital
shortfall of around US$1.2 million in the first financial year of operations
through to 31 March 2025 which may require additional funding from the Company
in the short term. Additional shortfalls could arise due to interest rate
increases or delays in revenue receipts. Any shortfalls are expected, in the
first instance, to be funded from operational cashflows within the SolarArise
portfolio, subject to remaining in compliance with existing debt and lender
requirements. Contingency for possible shortfalls has been ringfenced by the
Company until any asset sales are complete when calculating the initial
distribution to Shareholders, in order to protect the value achievable in any
sales process which will ultimately be delivered back to Shareholders.

As at 13 June 2024, US$41.7 million had been drawn under the US$54.9 million
project finance facility for construction of the RUMS project.

CASH BALANCES

At 13 June 2024, the Company had cash balances of US$33.1 million and held
US$1.8 million cash in its UK subsidiary, AEIT Holdings Limited. This is net
of the US$5.6 million received from NISPI and US$6.5 million outgoing into
SolarArise, being the US$4.5 million additional funding for the RUMS project
and an additional US$2.0 million to fund short-term working capital
requirements for SolarArise management fees and holding company expenses. This
funding, which does not include any provisions for the forecasted RUMS project
shortfalls, had already been captured as part of the announced 31 March 2024
net asset value ("NAV") and are therefore NAV neutral, exclusive of any
additional interest payable for the RUMS project. As at 31 March 2024, NAV was
US$80.2 million, and NAV per share was 45.6 cents.

A further US$0.4 million of payments, including VAT, are expected to be paid
by 30 June 2024 to settle the Company's known liabilities. The Company has
future expected receivables relating to VAT amounting to US$2.4 million.
Expected ongoing running costs including management fees are in the region of
US$0.3 million per month.

INITIAL DISTRIBUTION TO SHAREHOLDERS POST-LIQUIDATION

If the Resolution is passed, and as previously announced, the initial
distribution of cash to shareholders is currently estimated to be in the
region of US$20 million (equivalent to 11.4 cents per share), with the
actual amount to be determined at the time of the initial distribution to
shareholders. The liquidators would expect to make an initial distribution of
cash to shareholders by the end of July 2024.

ORDERLY REALISATION OF THE company'S ASSETS

Plans for commencing, if the Resolution is passed, the process to sell the
Company's investments are well advanced and the Board is encouraged by the
unsolicited expressions of interest received since announcing its intention to
recommend a realisation strategy on 11 April 2024.

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

Mark Percy / Gillian Martin (Corporate)
 Peel Hunt LLP (Joint Corporate Broker)                       Tel: +44 (0)20 7418 8900

Luke Simpson / Huw Jeremy (Investment Banking Division)
 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)

About Asian Energy Impact Trust plc

Asian Energy Impact Trust plc listed on the premium segment of the main market
of the London Stock Exchange in December 2021 and was awarded the Green
Economy Mark upon admission. The Company is an Article 9 fund under the EU
Sustainable Finance Disclosure Regulation.

With effect from 1 November 2023, the Company appointed Octopus Energy
Generation as its transitional investment manager.

Further information on the Company can be found on its website at
www.asianenergyimpact.com
(https://url.avanan.click/v2/___http:/www.asianenergyimpact.com___.YXAxZTpzaG9yZWNhcDphOm86Mjc3YWRiNjllOGU4MmM0MzgwMDBmYzRkOTRjMTYzMjc6NjpkYjBjOjc3Y2IwN2Y2Yjc1OWRmZjJkMmIyMGZmZjVmOTE3ZjJiMjQ3YWNmYzc4MjQ1ZWVkNTRjZTNiYmU0N2JlMWIwMzY6cDpU)
.

About Octopus Energy Generation

Octopus Energy Generation ("OEGEN") is driving the renewable energy agenda by
building green power for the future. Its London-based, leading specialist
renewable energy fund management team invests in renewable energy assets and
broader projects helping the energy transition, across operational,
construction and development stages. The team was set up in 2010 based on the
belief that investors can play a vital role in accelerating the shift to a
future powered by renewable energy. It has a 13-year track record with
approximately £6.7 billion of assets under management (AUM) (as of
December 2023) across 19 countries and total 3.7GW. These renewable projects
generate enough green energy to power 2.4 million homes every year, the
equivalent of taking over 1.4 million petrol cars off the road. Octopus Energy
Generation is the trading name of Octopus Renewables Limited. 

Further details can be found at  www.octopusenergygeneration.com
(https://url.avanan.click/v2/___http:/www.octopusenergygeneration.com/___.YXAxZTpzaG9yZWNhcDphOm86YWU5MjAzMTY0ODg2OGJjYzQ1NDUwNTU1OGVmZTc0ZmY6NjoyOTI1OmQyNWZmZDNlNzk1MmRhMGYxNTFmYzFkZjgyMmE2OWRiODBjZGQ5MmZmYTg2YTBjNzBjY2JmZGExZDhiNDM1N2M6cDpU)
.

 1  (#_ftnref1) RUMSL is a joint venture between Madhya Pradesh UrjaVikas
Nigam Limited and Solar Energy Corporation of India. Solar Energy Corporation
of India Ltd is a company of the Ministry of New and Renewable Energy,
Government of India.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFIFEERTISLIS