LONDON, UK: SDCL Energy Efficiency Income Trust (SEEIT) has signed an settlement to finance the design, acquisition and set up of energy effectivity options throughout various buildings within the US for BlocPower Energy Services 2 LLC, a wholly owned subsidiary of main energy effectivity developer BlocPower LLC, through a 10% participation in a US$80m mortgage facility.
BlocPower provides energy effectivity options (e.g. warmth pumps, LED lighting, Solar PV, battery storage) to decarbonise and electrify buildings, targeting small and medium-sized enterprises and low-to-moderate income communities in New York State initially, with potential to expand into different states (the “Project”). Capital expenditure required per site is anticipated to be ca. US$100-150k, producing significant diversification in counterparties throughout the Project.
The facility will be utilized by BlocPower to finance the capex of new projects within the US, and SEEIT will profit from long-term stable cashflows, through contracted debt repayments amortising over 10-12 years and with a fixed rate of curiosity on the time of funding linked to the credit score support provided for every project. The Facility will be secured by a primary precedence lien on the assets of the borrower and all fairness pursuits of the borrower’s parent, plus a pledge on the collections account.