EV charging infrastructure investment commitment

6 August 2020

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

First investment commitment to electric vehicle (EV) charging infrastructure

SEEIT, the first UK-listed investment company of its kind to invest exclusively in the energy efficiency sector, is pleased to announce that it has entered into an agreement with Electric Vehicle Network Limited ("EVN") to acquire an initial 112 rapid and ultra-fast EV charging stations across the UK for a total consideration of up to £50 million.

The EV charging sites will be developed and funded by EVN to the point at which they are contracted and construction ready, at which stage they will be acquired by SEEIT. The commitment of up to £50 million will be drawn down in tranches to fund the implementation of projects, with the first draw down of capital expected to take place later this year with the full balance of up to £50 million expected to be deployed over the next 12-18 months.

The construction period for each project is expected to be around 6 -12 weeks, at which point projects become operational and are expected to generate availability-based revenues.

Once operational, the EV charging sites will be contracted through 20-year, fixed price, CPI inflated Energy Service Agreements (''ESAs'') to Charge Point Operators (''CPOs''), which are typically investment grade utility companies. The EV Charging sites will also enter into long-term land-lease agreements with the site-owners, which are large, established forecourt or car park operators on the same basis. EVN, through its subsidiaries, will also manage the construction and operation of the assets, via asset management and maintenance contracts in accordance with the period and terms of the ESAs.

This project was identified as a target investment in the SEEIT Prospectus in June 2020 and represents the Company's first project in EV charging infrastructure. The project is consistent with SEEIT's investment policy by bringing competitively priced, cleaner and more efficient energy directly to the point of use and making efficient electric vehicle charging equipment more widely available.

Having followed the EV charging infrastructure business for several years, SDCL believes that this project represents the first opportunity to invest in EV charging assets under a framework similar to availability style infrastructure projects, with long-term pre-determined service fee revenues. In addition to the initial 112 sites, EVN has plans to develop a further c.380 EV charging sites, requiring an additional c.£150 million in the next 36 months, for which SEEIT has a right of first negotiation.

SEEIT is delighted to be partnering with EVN, which was founded in 2017 and is a dedicated EV charging infrastructure development company that seeks to address the challenges faced by both landlords and charge point operators in rolling out a network of EV charging infrastructure in the UK.

Commenting on the project, Jonathan Maxwell, CEO of SDCL, said: "There is a growing need for charging infrastructure in the UK as we transition towards more efficient fuel choices that reduce harm to our environment. We identified EV charging infrastructure as a target area in our June 2020 Prospectus and are pleased to have this opportunity to invest. EVN's unique business model offers CPOs charging infrastructure as a service. This fits our model of investing in availability-based services with strong counterparties. Project revenues will be generated from energy services agreements with predictable costs, presenting the opportunity for a stable and predictable investment for SEEIT and one we are delighted to add to our portfolio. This will also provide further diversification in terms of technology, counterparty and application.''

For Further Information

About SEEIT

SDCL Energy Efficiency Income Trust plc is the first listed company of its kind to invest exclusively in the energy efficiency sector. Examples of the projects in the portfolio include combined cooling/heating and power plants, as well as energy efficiency projects in the UK and the US. Since acquisition of its seed portfolio at IPO, the Company has announced investment in a diversified portfolio of energy efficiency assets, including a portfolio of rooftop solar photovoltaic projects for Tesco in the UK and a portfolio of cogeneration assets in north east United States, which were identified as pipeline projects in its IPO prospectus, as well as an additional investment in a portfolio of energy efficiency loans in the United States, a portfolio of cogeneration assets in Spain and a portfolio of recycled energy and cogeneration projects in the United States.

The Company's total assets are primarily allocated across the UK, Europe and North America in broadly equal proportions.

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 5.5p per share in respect of the financial year to 31 March 2021. SEEIT's last published NAV was 101.0p per share as at 31 March 2020.

Further information can be found on the Company's website at www.sdcleeit.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 the group 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.

About The EV Network (EVN)

Founded in 2017, The EV Network (EVN) is a leading independent EV charging infrastructure development company.  EVN's mission is to address the challenges faced by both landlords and charge point operators (CPOs) in rolling out a network of rapid and ultra-fast EV chargers and charging infrastructure in the UK.