AQUILA ENERGY EFFICIENCY TRUST PLC

M&A Activity • Feb 28, 2025

National Storage Mechanism | Additional information

RNS Number : 9489Y

Aquila Energy Efficiency Trust PLC

28 February 2025

28 February 2025   

Aquila Energy Efficiency Trust PLC

(the "Company")

REALISATION OF CERTAIN INVESTMENTS

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION 

The Board is pleased to announce that the Company has entered into agreements to realise its Bio-LNG investment in Germany and the majority of its Italian Superbonus investments for a combined gross consideration of €31.84 million. 

The Bio-LNG investment in Germany, which was made in two tranches in November 2022 and April 2024 to facilitate the acquisition of an existing biogas plant and its conversion into a Bio-LNG plant at a total cost of €9.29 million, had a book value as at 30 June 2024 of €9.73 million and generated cash receipts to the Company of €1.75 million in the period from 30 June 2024 before the realisation amount of €8.52 million, which has been received by the Company on 28 February 2025.  This investment produced a gross rate of return of 8.9% p.a. over the life of the investment , which would be above the expectation for this asset of 8.4% at the time the initial investment was made in November 2022.

The Superbonus investments were the projects managed by the Energy Service Companies ("ESCOs") Enerstreet and Enerqos Energy Solutions, which had a book value, net of expected credit loss ("ECL") provisions, as at 30 June 2024 of €24.13 million.  These investments generated cash receipts of €2.0 million to the Company in the period from 30 June 2024 before the realisation amount of €23.32 million, which the Company expects to receive in the coming weeks.  The realisation amount, which is being funded by the ESCOs themselves and not from funds received from the sale of the tax credits produced by the Superbonus projects, represents the recovery of all of the capital invested in these projects plus some late payment interest. These Superbonus investments are expected to produce a gross internal rate of return of 9.4% p.a. over the lives of these investments, which would be above expectations of 8.0% at the time the initial investments were made in December 2021.

In the coming months the Board will make a significant distribution to shareholders following receipt of these realisations.  A further announcement will be made in due course as to the structure of the payment and the amount.. 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014, as it forms part of UK domestic law ("MAR"). Upon publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR. The person responsible for arranging the release of this announcement on behalf of the Company is Apex Listed Companies Services (UK) Limited.  

For further information, please contact:

Aquila Capital   (Investment Adviser)  Via Buchanan
Stifel  (Corporate Broker) Edward Gibson-Watt, Madison Kominski	020 7710 7600
Buchanan  (Financial PR) Charles Ryland, Sam Adams	020 7466 5000
Apex Listed Companies Services (UK) Limited  (Company Secretary) Sinead van Duuren	020 3327 9720

The Company's LEI is 213800AJ3TY3OJCQQC53

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