Acquisition of two hydropower portfolios
21 January 2022
Downing Renewables & Infrastructure Trust plc
("DORE" or the "Company")
Acquisition of two hydropower portfolios totalling c. 48 GWh annual average production
Downing Renewables & Infrastructure Trust plc (LSE: DORE) has exchanged contracts to acquire two operational portfolios of hydropower plants located in central Sweden for a total consideration of approximately EUR 25 million. DORE has acquired a c. 12 GWh portfolio of hydropower plants from ÄSI Kraft AB located in the SE3 electricity pricing zone for approximately EUR 6 million and a c. 36 GWh portfolio located in the SE2 zone for approximately EUR 19 million from AB Edsbyn Elverk. The acquisitions have been largely funded through drawdown on its Downing Hydro AB (DHAB) Swedish hydropower portfolio debt facility signed in November 2021. The acquisitions are expected to close within one week.
The first portfolio comprises five hydropower plants located on three different rivers in central Sweden. The portfolio has an expected annual average production of c.12 GWh of electricity. The sites also benefit from a long operational history and are located in the county of Dalarna, central Sweden, in the attractive SE3 price area.
The second portfolio includes four run-of-river hydropower plants situated on a single river in central Sweden. The portfolio has an expected annual average production of c.36 GWh of electricity. The sites benefit from a long operational history and were refurbished between 2010 - 2013. The hydropower plants are located in and around the Swedish town Edsbyn in central Sweden.
The acquisitions increase the total number of managed Swedish hydropower plants to 17, with a total annual average production of c. 157 GWh. The hydropower plants acquired will be integrated into the existing portfolio of hydropower plants in Sweden owned by Downing Hydro AB and will support DORE's strategy, which focuses on diversification by geography, technology, revenue and project stage, designed to increase the stability of revenues and the consistency of income to shareholders.
Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP, commented: "We are pleased to expand our hydropower portfolio in Sweden. These attractive acquisitions will increase DORE's hydropower production by just under 50% and add three more directly controlled storage reservoirs in SE3 and benefit from further seasonal storage reservoirs in SE2. They will also allow DORE to benefit from the economies of scale that come with further growth. Hydropower is often forgotten as a source of renewable power, but it will be key part of the energy transition as it is possible to hold energy back in the reservoirs and sell when supply from renewable sources elsewhere is low. This helps reduce price volatility and maximises the value of the energy stored for end users and our investors ."
ENDS
Contact details:
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Downing LLP - Investment Manager to the Company
Tom Williams
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+44 (0)20 3954 9908 |
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Singer Capital Markets - Corporate Broker to the Company
Robert Peel, Alaina Wong, Asha Chotai (Investment Banking) Sam Greatrex, Alan Geeves, James Waterlow, Paul Glover (Sales)
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+44 (0)20 7496 3000
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TB Cardew - Public relations advisor to the Company
Ed Orlebar Tania Wild
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+44 (0)20 7930 0777
+44 (0)7738 724 630 +44 (0)7425 536 903 |
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 in excess of £1.7 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 140 investments into solar parks, wind farms and hydroelectric plants since 2010.
This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America. This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.
For further details please visit www.downing.co.uk
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