ThomasLloyd Energy Impact proposes investment policy change

investmentweek.co.uk:

The news follows last month’s announcement that TLEI intended to appoint Octopus Energy Generation as the transitional investment manager.

In a regulatory notice today (11 October), the TLEI board said aborting the project would crystallise an immediate write off of $8.9m of costs incurred and result in the encashment of $1.2m of performance bank guarantees. 

This option would also potentially indirectly expose SolarArise, a Delhi-based renewable energy platform owned by ThomasLloyd, to abandonment penalties of up to $32.2m and likely protracted associated litigation. 

ThomasLloyd Energy Impact shares temporarily suspended over fair value 'uncertainty'

Having taken advice and explored the various possible outcomes of the RUMS project, the decision to proceed is considered the «less value destructive option» for shareholders. 

Proceeding with the construction of the project would allow SolarArise to better manage its liabilities and provide greater certainty compared to a «very uncertain process» of aborting it. 

Once operational as part of the wider portfolio, the project may also facilitate a more «attractive exit» of SolarArise in any future liquidity event. 

To enable the RUMS project to proceed, the TLEI board has agreed to a loan worth $20m from the trust to SolarArise. 

This provision of funding, alongside TT8, another development project, may result in the fair value of TLEI's Indian portfolio exceeding 50% of its gross asset value, the single country limit in the investment policy. 

Therefore, a proposed change to the investment policy will seek approval to exclude the RUMS project from  the assessment of the single country limit. 

ThomasLloyd Energy Impact selects Octopus Energy Generation as transitional