Less portfolio, less leverage
SDCL Efficiency Income Trust plc is selling a diversified bundle of energy efficiency infrastructure assets to Kyotherm SAS for as much as about £105 million. Think of it as the company taking a few plates off the table so it can breathe easier on the debt side.
The money part
The deal is expected to hand SDCL around £84 million in cash on day one, with the rest tied up in an earnout of up to roughly £4 million if performance targets are hit over the next 3 to 5 years. The proceeds are mostly headed straight for the revolving credit facility, with the company targeting pro forma aggregate gearing of about 65% of NAV.
Why investors should care
This isn’t just a garage sale. Management says the disposal fits its broader plan to reduce gearing, which can be a relief valve when leverage starts getting a little too cozy. The company also said there’s no change to its target dividend of 6.36p for the financial year ending 31 March 2026, which is investor code for: ‘we’d like the payout story to stay intact, thanks.’
Big picture
Completion is expected by mid-April 2026, subject to customary closing conditions. If the deal lands cleanly, investors get a cleaner balance sheet and a little less financial drama — even if it means a modest hit to NAV of around 1.2p per share.