MOBILIST Catalyses Successful ThomasLloyd Energy Impact Trust plc IPO
With financial backing from the UK government, the ThomasLloyd Energy Impact Trust provides the first-ever dedicated offering on the London Stock Exchange to provide direct access to sustainable energy infrastructure in fast-growing and emerging economies in Asia.
On 14 December 2021, the ThomasLloyd Energy Impact Trust (TLEI) – an investment vehicle managed by the ThomasLloyd Group, focused on investing in sustainable energy infrastructure projects in Asia – was listed on the premium segment of the London Stock Exchange’s main market.
ThomasLloyd Group participated in the FCDO’s ongoing Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) Competition, which engages financial institutions in a search for the best sustainable infrastructure proposal that can list either on the London Stock Exchange or local exchanges. TLEI is the first fund manager to complete this process successfully and gain investment from the UK government.
The competition is part of a broader set of initiatives to mobilise institutional capital into sustainable finance in emerging markets through listed products. MOBILIST’s objective is to make investing in developing countries an integral part of the universe of investment opportunities available to investors.
TLEI’s initial public offering (IPO) was catalysed by a £24.5 million (US$32.3 million) investment from the UK government-funded MOBILIST programme. TLG’s participation in the MOBILIST competition helped raise awareness of the IPO. A further £63 million ($83.1 million) in private capital was raised from a broad range of British and European investors, including blue-chip institutional asset managers, banks, wealth managers and retail investors, bringing the total to £87.5 million ($115.4 million). TLEI’s market capitalisation is anticipated to stand at £113.8 million ($150 million). By leveraging private capital at a ratio of 1:4, MOBILIST has indicated its ability to effectively crowd-in private investors.
ThomasLloyd Group has successfully deployed over $1 billion across 16 projects in renewable energy power generation, transmission and sustainable fuel production with a total capacity in excess of 700 MW across high-growth and emerging markets in Asia.
TLEI is the first investment trust listed on the London Stock Exchange that provides dedicated exposure to sustainable energy infrastructure assets in fast-growing markets in Asia. TLEI’s investment strategy focuses on expanding sustainable energy sources, whilst simultaneously contributing to a transition to ‘net-zero’ greenhouse gas emissions.
TLEI has seed assets worth circa US$59 million, comprising interests in platforms with more than 500MW of generating capacity once fully operational. It also has a pipeline of assets in excess of US$750 million identified with more than 1,500 MW of generating capacity identified.
The Company represents a clear and compelling opportunity for investors wishing to mitigate or balance ESG and climate risks in their portfolio. The Company is expected to meet the criteria for SFDR Article 9 and qualify for London Stock Exchange’s Green Economy Mark at Admission. This process recognises companies that derive 50% or more of their total annual revenues from products and services that contribute to the global green economy.
Governments throughout Asia are now committed to aspirational renewable energy targets, but there is an urgent need for more capital. By 2040, the World Bank predicts a shortfall of US$800 billion per annum between what is being invested and what needs to be invested to deliver the United Nation’s Sustainable Development Goals. Across TLEI’s priority markets of India, the Philippines, Indonesia, Vietnam, Bangladesh and Sri Lanka, there is an estimated US$1 trillion funding shortfall for current infrastructure investment spend. Both ThomasLloyd and the FCDO believes that private capital will play a critical role in closing this funding gap.
The catalytic role performed by MOBILIST’s investments validates the rationale that underpins MOBILIST’s theory of change. Namely, that targeted deployment of “catalytic” capital can help overcome the challenges of raising new capital quickly and effectively.
Ross Ferguson, who leads FCDO’s MOBILIST programme said, “We attach great importance to the role of public markets in bringing greater transparency to investments in developing markets and recognise the importance that investors place on accessing these opportunities through regulated, transparent, liquid markets. These are essential qualities to build confidence for investors. FCDO works with partners across the financial services sector to enable these new paths for investors and for financing in the developing world.”
“With more than a decade’s experience investing in sustainable energy infrastructure markets in Asia, we are well-placed to convert this global challenge into a highly compelling investment opportunity, delivering our differentiated triple return in the process. We were delighted to be selected as the first recipient of FCDO’s MOBILIST Competition, where we support the UK government’s climate and investment agenda and deliver real impact.” Michael Sieg, Chief Executive Officer, ThomasLloyd.