DOWNING RENEWABLES & INFRASTRUCTURE

M&A Activity • May 5, 2022

National Storage Mechanism | Additional information

RNS Number : 3785K

Downing Renewables & Infrastructure

05 May 2022

05 May 2022

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Downing Renewables & Infrastructure Trust plc 

("DORE" or the "Company")

Acquisition of an 18GWh hydropower portfolio in Sweden

Intention to raise additional equity

Notice of Q1 NAV update

Acquisition

Downing Renewables & Infrastructure Trust plc (LSE: DORE) has entered into an agreement to acquire, through Downing Hydro AB ("DHAB"), a 100% interest in a portfolio of operational run-of-river hydropower plants in Sweden (the "Portfolio") for a total consideration of approximately EUR 20 million (c.£17 million), from Batten AB and Daturum AB. The acquisition will initially be funded by drawing down on DORE's £25 million revolving credit facility ("RCF"), meaning the RCF will be 68% drawn.

The Portfolio comprises two hydropower plants located in Sweden's southern SE4 pricing region. The plants were comprehensively renovated between May 2014 and September 2019 and have an aggregate forecast annual production of c.18 GWh p.a.

The newly acquired hydropower plants will be fully integrated into DORE's existing hydropower operational, control and dispatch arrangements. This acquisition will increase the number of DHAB hydropower plants to 19 and the total forecast annual production of the hydropower portfolio to c.174 GWh, a c.60% increase since 31 December 2021.

These are DORE's first assets to be located in the attractive southern SE4 pricing region, which has the highest wholesale power prices in Sweden, benefitting from export cables to continental Europe. The acquisitions in a new price zone will further support DORE's strategy of focusing on diversification by geography, technology, revenue and project stage, designed to increase the stability of revenues and the consistency of income to shareholders.

Intention to raise equity

The Investment Manager continues to see a strong pipeline of investment opportunities. In order to access that pipeline, and to repay drawings under the RCF, the Company is considering the issue of new ordinary shares to fund additional investments, with the wider aims of increasing the Company's diversification, driving efficiencies of scale at the portfolio level, spreading the fixed costs over a wider asset base and increasing liquidity for current and future shareholders.

Any decision on an equity raise is at the absolute discretion of the Directors and will be subject to prevailing market conditions and investor sentiment. Should the Company decide to proceed with an equity raise, a further announcement will be made in due course.

Q1 NAV update

DORE will announce its Q1 NAV update and dividend declaration in the week commencing 9 May 2022.

Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP, commented: "We are delighted to announce another accretive acquisition for DORE in the hydropower sector, the latest in a series of excellent opportunities for expansion of the DHAB platform that the team has worked so hard to establish. Hydropower is one of the most effective sources of renewable energy, producing by far the most energy per unit of capacity of all of our renewable investments.  When combined with the storage capacity of the reservoirs in the existing portfolio, we think it is a compelling investment.  It will play a key role in furthering the transition to net zero.

"Raising further equity for the Company should allow us to continue to further enhance the portfolio for the benefit of shareholders by deploying into the attractive pipeline that we have available to us."

Contact details:

Downing LLP - Investment Manager to the Company Tom Williams	+44 (0)20 3954 9908
Singer Capital Markets - Joint Corporate Broker to the Company Robert Peel, Alaina Wong, Asha Chotai (Investment Banking) Sam Greatrex, Alan Geeves, James Waterlow, Paul Glover (Sales)	+44 (0)20 7496 3000
Winterflood Securities Limited - Joint Corporate Broker to the Company Neil Morgan (Corporate Finance) Darren Willis (Sales)	+44 (0)20 3100 0000
TB Cardew - Public relations advisor to the Company Ed Orlebar Tania Wild	+44 (0)20 7930 0777 +44 (0)7738 724 630          +44 (0)7425 536 903 DORE@tbcardew.com

About Downing Renewables & Infrastructure Trust plc (DORE)

DORE is a closed-end investment trust that aims to provide investors with an attractive and sustainable level of income, with an element of capital growth, by investing in a diversified portfolio of renewable energy and infrastructure assets in the UK and Northern Europe. DORE has been awarded the London Stock Exchange's Green Economy Mark in recognition of its contribution to the global 'Green Economy'.

The Board classifies DORE as a sustainable fund with a core objective of accelerating the transition to net zero through its investments, compiling and operating a diversified portfolio of renewable energy and infrastructure assets to help facilitate the transition to a more sustainable future. The Company believes that this directly contributes to climate change mitigation.

DORE's strategy, which focuses on diversification by geography, technology, revenue and project stage, is designed to increase the stability of revenues and the consistency of income to shareholders. For further details please visit www.doretrust.com  

LEI: 2138004JHBJ7RHDYDR62

About Downing LLP

Downing LLP is a London-based investment management firm.   It has over 25,000 investors and currently manages c.£1.6 billion of equity invested into businesses across a range of sectors, from renewable energy, care homes, health clubs, and children's nurseries, to technology and sports nutrition. Downing has a demonstrable track record in renewables, having made more than 175 investments into solar parks, wind farms and hydroelectric plants since 2010.

For further details please visit www.downing.co.uk

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