Disposal and Gearing Reduction

20 March 2026

SDCL Efficiency Income Trust plc

("SEIT" or the "Company")

Disposal and gearing reduction

SEIT is pleased to announce the sale of a diversified portfolio of operational and yielding energy efficiency infrastructure assets to Kyotherm SAS ("Kyotherm"), for a total enterprise value of up to c.£105 million (the "Disposal"). The portfolio includes the Company's interests in Capshare Future Energy Solutions (asset portfolios), Sparkfund, Moy Park Biomass, Tallaght Hospital, Baseload, Lycra, SEEIPL, Northeastern US CHP, CPP Biomass, Supermarket Solar UK and GET Solutions (the "Portfolio"). Kyotherm is a leading investment company dedicated to financing decarbonised heat and energy efficiency projects globally.

The Disposal is consistent with the Company's stated priority to reduce gearing through asset sales and helps streamline the Company's overall portfolio which now has greater focus on Commercial and Industrial customers and District Energy solutions. The agreed price represents a discount of c.9%[1] to the carrying value of the Portfolio as at 30 September 2025, and the Disposal is expected to result in a reduction to the Company's NAV of c. 1.2p.

The Disposal consideration of up to c.£105 million includes an earnout of up to c.£4 million, payable to the Company if agreed performance conditions are met over the next 3-5 years. Day-one cash proceeds expected to be received on completion are c.£84 million, after permitted distributions, transaction costs, debt and debt-like items. Completion of the Disposal is subject to customary closing conditions and is expected by mid-April 2026. Goldman Sachs International acted as sole financial adviser to the SEIT entity involved in the Disposal.

Financial Impact

The Company intends to apply proceeds of the Disposal primarily towards reducing drawings under the existing revolving credit facility. This, along with near term project-level debt reductions, is targeted to bring the pro forma aggregate gearing as a percentage of NAV as at 30 September 2025 to c.65%.

There is no change to the Company's target dividend of 6.36p for the current financial year. The NAV for the financial year ended 31 March 2026 will be reported in June 2026.

Outlook

As SEIT has previously stated, many institutional and financial investors within the mid-market and energy transition sectors are under pressure to sell assets in order to retire financing or deliver distributions, creating excess supply and increasing demand for scarce capital. This dynamic is enabling buyers to secure assets below carrying values and is illustrative of a strong buyers' market.

The positive outcome achieved by the Disposal announced today is the result of months of disciplined execution and reflects the attractive, yielding nature of the Portfolio. As with the Company's other disposals to date, the Disposal is being made to strategic investors, who can realise greater operational benefits. Given the competition for capital in the private capital markets, the Board considers it unlikely that other individual asset sale processes would deliver equivalent shareholder value in the near to medium term, a factor that will be considered as part of the year-end valuation process, including the calculation of the Company's NAV.

Tony Roper, Chair of SEIT, commented:

"The Board is pleased to announce today's disposal, in line with our near-term objectives set out in our interim results in December. The net proceeds of the disposal will primarily be used to reduce gearing, targeted to bring aggregate debt levels to c.65% of NAV.

The Board's intention remains to reduce gearing and generate portfolio liquidity. However, the sale of a high yielding asset portfolio, at even a modest discount to NAV and which has taken longer than anticipated, illustrates the challenges of achieving disposal activity at reasonable valuations. The Board continues to view the status quo, including the current share price discount to NAV, as untenable and is working with the Manager to progress strategic solutions with a clear focus on achieving value for our shareholders."

Jonathan Maxwell, CEO of SDCL, commented:

"This disposal reflects the commitment and determination shown across our team to deliver strong outcomes for shareholders in a highly challenging market.

The transaction results in a more streamlined portfolio, now increasingly focused on Commercial and Industrial customers and District Energy solutions, where we see the greatest opportunity to drive long‑term value through energy efficiency."

-ENDS-

For Further Information

Goldman Sachs International acted as sole financial adviser to the SEIT entity involved in the Disposal.

LEI: 213800ZPSC7XUVD3NL94

About SEIT

SDCL 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, a portfolio of on-site energy recycling, cogeneration and process efficiency projects, servicing the largest steel blast furnace in the United States 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 shareholder 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 with a stable dividend income, capital preservation and the opportunity for capital growth. The Company is targeting a dividend of 6.36p per share in respect of the financial year to 31 March 2026. SEIT's last published NAV was 87.6p per share as at 30 September 2025.

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

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

Investment Manager

SEIT'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, Hong Kong and Singapore. SDCL is authorised and regulated in the UK by the Financial Conduct Authority.

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

Disclaimer(s)

Goldman Sachs International, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom, is acting for the SEIT entity involved in the Disposal and no one else in connection with the Disposal and will not be responsible to anyone other than such SEIT entity for providing the protections afforded to clients of Goldman Sachs International, or for giving advice in connection with the Disposal or any matter referred to herein.