6 October 2023

SDCL Energy Efficiency Income Trust plc
("SEEIT" or the "Company")

Investment in Portfolio Company

SEEIT is pleased to announce that it has acquired the outstanding balance of loan facilities secured against an operational portfolio of LED lighting projects in the USA held by Future Energy Solutions Lighting Holdings ("FES"), a SEEIT portfolio company.

The loan was acquired for approximately $31 million (£25 million) and provides SEEIT with the entirety of the economic interest in a fully contracted portfolio comprising 1,500+ contracts with remaining tenors of up to 13.5 years. The Company was presented with this exclusive opportunity because of its equity interests in FES. The investment creates the potential to realise operational and financial efficiencies across the FES portfolio, whilst on a standalone basis it benefits from strong cashflow yields and is forecast to deliver double digit unlevered returns. The transaction also secures the Company's access to a customer base with a strong credit record, offering future incremental investment and re-contracting opportunities.

LED lighting systems typically produce 100,000+ hours of illumination and consume up to 90% less energy than traditional incandescent light bulbs, leading to greatly reduced energy expenditures for users. The associated environmental benefits include a significant reduction in CO2 emissions relative to traditional lighting technology, as well as lower overall waste thanks to the greater lighting life span of these bulbs.

This investment, together with investments made since 31 March 2023 that substantially related to the organic pipeline, has been funded from the Company's £180 million revolving credit facility which is currently £100 million drawn.

The Board and Investment Manager are actively exploring opportunities to recycle capital, including through selective disposals, as well as carefully reviewing the relative and absolute levels of gearing in the Group. SEEIT's aggregate gearing remains low relative to its covenants, with the debt primarily sitting at a project level, where it is non-recourse to the Company, typically benefitting from hedged interest rates and amortising such that the debt quantum is naturally reducing over time.

For Further Information

About SEEIT

SDCL Energy Efficiency Income Trust plc is a constituent of the FTSE 250 index. It was the first UK listed company of its kind to invest exclusively in the energy efficiency sector. Its projects are primarily located in North America, the UK and Europe and include, inter alia, a portfolio of cogeneration assets in Spain, a portfolio of commercial and industrial solar and storage projects in the United States, a regulated gas distribution network in Sweden and a district energy system providing essential and efficient utility services on one of the largest business parks in the United States.

The Company aims to deliver shareholders value through its investment in a diversified portfolio of energy efficiency projects which are driven by the opportunity to deliver lower cost, cleaner and more reliable energy solutions to end users of energy.

The Company is targeting an attractive total return for shareholders of 7-8 per cent. per annum (net of fees and expenses and by reference to the initial issue price of £1.00 per Ordinary Share), with a stable dividend income, capital preservation and the opportunity for capital growth. The Company is targeting a dividend of 6.24p per share in respect of the financial year to 31 March 2024. SEEIT's last published NAV was 101.5p per share as at 31 March 2023.

Past performance cannot be relied on as a guide to future performance.

Further information can be found on the Company's website at www.seeitplc.com.

Investment Manager

SEEIT's investment manager is Sustainable Development Capital LLP ("SDCL"), an investment firm established in 2007, with a proven track record of investment in energy efficiency and decentralised generation projects in the UK, Continental Europe, North America and Asia.

SDCL is headquartered in London and also operates worldwide from offices in New York, Dublin, Madrid, Hong Kong and Singapore. SDCL is authorised and regulated in the UK by the Financial Conduct Authority.

Further information can be found on at www.sdclgroup.com.

About Future Energy Solutions

FES is an innovative global green technology company that provides funded and capital purchase lighting solutions for large scale commercial and industrial businesses. The FES service includes surveying, designing, analysing, procuring, project managing, installing, and maintaining new energy efficient lighting systems. Formed in 2009 in the United States, FES has grown into a family of companies around the globe. The UK office opened in April 2013 and has since installed over 300,000 energy efficient luminaries across several client portfolios, with an additional presence in Mainland Europe.