Net Asset Value and Factsheet

RNS Number : 2825F

VH Global Sustainable Energy Oppt.

04 November 2022

 

VH Global Sustainable Energy Opportunities plc

4 November 2022

Net Asset Value as at 30 September 2022

VH Global Sustainable Energy Opportunities plc (the "Company" or "GSEO") announces that its unaudited net asset value ("NAV") as at 30 September 2022 was £475.3m, equivalent to a NAV per ordinary share of 112.5p. This represents a 0.5% reduction from 113.1p as at 30 June 2022.

The movements in NAV during the period include:

	Pence per Share
Net Asset Value per Share as at 30 June 2022	113.1
Adjustment for share issue	(1.4)
Dividend paid	(1.25)
Fund expenses	(0.2)
Discount rate	(6.8)
Forecast inflation	0.6
Construction-to-Operational assets	1.9
Asset value creation	3.7
Foreign exchange	2.9
Net Asset Value per share as at 30 September 2022	112.5

Discount rates

An increase in discount rates of 2% on average, primarily driven by the rise of the underlying risk-free rate of 1.7% from the last quarter, resulting in base case discount rates at 30 September 2022 of 8.6% in the US, 8.9% in Australia and 12.6% in Brazil.

Forecast Inflation

Increases in overall inflation during the quarter had a positive impact on NAV. The base case short-term 2023 inflation rates are 3.5% in the US, 4.8% in Australia and 4.7% in Brazil. Long ‑ term inflation rates assumptions are 2.0% in the US, 2.5% in Australia and 3.0% in Brazil.

Construction-to-Operational Assets

Valuation uplifts to assets that have been in construction becoming operational during the quarter. Specifically, additional US terminal storage assets and five additional solar PV assets in Brazil, bringing the total to nine operating assets in the programme.

Asset Value Creation

Enhancement of contract terms on the US terminal storage tanks and continued out ‑ performance of the Australian solar assets.

Foreign Exchange

The weakness of GBP to the basket of currencies within the Company's portfolio, including the USD, AUD, and BRL, during the quarter.

Activity during the quarter

During the quarter, the Company announced:

· On 1 July 2022, the Company's successful completion of its Placing, Open Offer, Offer for  Subscription and Intermediaries Offer, raising gross proceeds of £122 million.

· The acquisition of the Mascarenhas Hydro Electric Facility (the "Hydro Asset") in the state of Espírito Santo, Brazil for a total consideration of BRL 1,225 million, which comprised BRL 800 million on closing subject to adjustments. The remainder is payable subject to the conditions established under the process of renewal of the Hydro Asset concession in H1 2027. The transaction closing is subject to customary regulatory approvals. This run-of-river asset's nameplate capacity is 198MW and has been operational since 1974.

· The acquisition and build of three fully-permitted solar PV sites for £21.2 million as part of the existing £50 million commitment to its Australian solar PV and storage investment programme (the "Australian Energy Transition Programme"). This relates to Phase III of the Australian energy transition programme in respect of an initial three new solar PV sites of 5MW each, located in New South Wales. To date, the total deployment in this programme is £36.2 million.

The factsheet will be available on the Company's website.

www.vh-gseo.com

The Company's LEI is 213800RFHAOF372UU580.

For further information, please contact:

Edelman Smithfield (PR Adviser)

Ged Brumby                     + 44 (0)7540 412 301

Kanayo Agwunobi  [phone]

Victory Hill Capital Partners LLP (Investment Adviser)

Navin Chauhan  [e-mail]

Numis (Joint Corporate Broker)

David Benda   [phone]

Matt Goss

Alvarium Securities Limited (Joint Corporate Broker)

Mark Thompson              [phone]

Eddie Nissen                     [phone]

Oliver Kenyon    [phone]

G10 Capital Limited (AIFM)

Mohammed Rahman   + 44 (0)20 7397 5450

Paul Cowland

Apex Fund and Corporate Services (UK) Limited (Company Secretary)

Geetika Dayal  [phone]

About Victory Hill Capital Partners LLP

Victory Hill Capital Partners LLP ("VHCP") is authorised and regulated by the Financial Conduct authority (FRN 961570).

Victory Hill is based in London and was founded in May 2020 by an experienced team of energy financiers that have spun-out of a large established global project finance banking group. The team have an established track record built over six years while working together in their previous roles and participating in over $37.1bn in sustainable energy project transaction values, generating over 24.2 per cent. equity returns. In addition, the team has also participated in more than $200bn in transaction values across 91 conventional and renewable energy-related transactions in over 30 jurisdictions worldwide, throughout their individual careers. The average experience per individual is 22 years of relevant energy finance experience.

The VHCP team deploys its experience across different financial disciplines in order to assess investments holistically from multiple points of view. The firm pursues operational stability and well-designed corporate governance to generate sustainable positive returns for investors. It focuses on supporting and accelerating the Energy Transition and the attainment of the UN Sustainable Development Goals.

VHCP is a signatory of the United Nations Principles for Responsible Investing (UN PRI), the United Nations Global Compact (UN GC) and is a formal supporter of the Financial Stability Board's Task-Force on Climate-related Disclosures (TFCD).

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