TIDMHEIT
RNS Number : 1979L
Harmony Energy Income Trust PLC
04 September 2023
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT ARE NOT
FOR RELEASE, PUBLICATION, TRANSMISSION, FORWARDING OR DISTRIBUTION,
DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE
UNITED STATES OR ANY JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A
VIOLATION OF LOCAL APPLICABLE SECURITIES LAWS OR REGULATIONS.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF REGULATION (EU) NO 596/2014 WHICH IS PART OF UK LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"). UPON
PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN FOR THE PURPOSES OF MAR.
4 September 2023
Harmony Energy Income Trust plc
(the "Company" or "HEIT")
Sale of Rye Common Project
Harmony Energy Income Trust plc, which invests in battery energy
storage systems ("BESS") in Great Britain, announces that it has
completed the sale of its "shovel-ready" BESS development project,
Rye Common (99 MW) (the "Rye Common Project") to Pulse Clean Energy
Limited (the "Sale") at a premium to its carrying value.
Background
The Rye Common Project was acquired by the Company from Harmony
Energy Limited in December 2022 alongside two other "shovel ready"
BESS projects, Wormald Green and Hawthorn Pit, which are currently
under construction and on track for energisation in Q2 2024 and Q3
2024, respectively.
Given the challenging capital raising environment that has
remained following the Government's 'mini-budget' in September
2022, the Company opted to secure funding for the construction of
the Hawthorn Pit and Wormald Green projects through the successful
increase in its debt facilities with NatWest and Rabobank, as
announced in February 2023.
Alternative funding options for the construction of the Rye
Common Project were considered including potential vendor financing
and other deferred capex structures, however it was ultimately
determined by the Board that a sale of the project should also be
explored.
The Sale
The Sale process attracted multiple bidders at attractive prices
demonstrating the continued high level of interest for BESS
projects with near-term energisation potential. In aggregate, the
proceeds of the Sale coupled with recycled cash previously
allocated to this project represents a 1.5 per cent. premium to the
carrying value of the Rye Common Project as at 30 April 2023 set
out in the Company's interim results.
The Investment Adviser and the Board believe that the successful
Sale at this value:
a) demonstrates the high-quality nature of BESS projects developed
by Harmony Energy Limited. The Company benefits from an exclusive
right of first refusal over a further 505 MW of pipeline BESS
projects controlled by Harmony Energy Limited and in various
stages of development; and
b) validates the Company's carrying values for projects.
Following the Sale, the Company's portfolio comprises 395.4 MW /
790.8 MWh across eight BESS projects, of which three are
operational and five are under construction.
END
For further information, please contact:
Harmony Energy Advisors Limited
Paul Mason
Max Slade
Peter Kavanagh
James Ritchie
info@harmonyenergy.co.uk
Berenberg
Gillian Martin
Ben Wright
Dan Gee-Summons +44 (0)20 3207 7800
Stifel Nicolaus Europe Limited
Mark Young
Edward Gibson-Watt
Rajpal Padam
Madison Kominski +44 (0)20 7710 7600
Camarco
Eddie Livingstone-Learmonth
Andrew Turner +44 (0)20 3757 4980
JTC (UK) Limited
Uloma Adighibe
Harmony.CoSec@jtcgroup.com +44 (0)20 3832 3877
LEI: 254900O3XI3CJNTKR453
About Harmony Energy Advisors Limited (the "Investment
Adviser")
The Investment Adviser is a wholly owned subsidiary of Harmony
Energy Limited.
The management team of the Investment Adviser have been
exclusively focussed on the energy storage sector (across multiple
projects) in Great Britain for over six years, both from the point
of view of asset owner/developer and in a third-party advisory
capacity. The Investment Adviser is an appointed representative of
Laven Advisors LLP, which is authorised and regulated by the
Financial Conduct Authority.
Important Information
This announcement contains inside information for the purposes
of Article 7 of MAR. Upon publication of this announcement, the
inside information is now considered to be in the public domain for
the purposes of MAR. The person responsible for arranging the
release of this announcement on behalf of the Company is Harmony
Energy Advisors Limited .
This announcement does not constitute an offer to sell or the
solicitation of an offer to acquire or subscribe for shares in the
Company in any jurisdiction. This distribution of this announcement
outside the UK may be restricted by law. No action has been taken
by the Company that would permit possession of this announcement in
any jurisdiction outside the UK where action for that purpose is
required. Persons outside the UK who come into possession of this
announcement should inform themselves about the distribution of
this announcement in their particular jurisdiction.
This announcement contains (or may contain) certain
forward-looking statements with respect to certain of the Company's
plans and/or the plans of one or more of its investee companies and
their respective current goals and expectations relating to their
respective future financial condition and performance and which
involve a number of risks and uncertainties. The Company's target
returns are a target only and there is no guarantee that these will
be achieved. This Company cautions readers that no forward-looking
statement is a guarantee of future performance and that actual
results could differ materially from those contained in the
forward-looking statements.
It should also be noted that any future NAV per Share announced
by the Company in due course will, in addition to the matters
described in this announcement, also be affected by valuation
movements in the Company's portfolio and other factors including,
without limitation, purchase prices of battery energy storage
systems and components, project development and construction costs,
income and pricing from contracts with National Grid ESO and other
counterparties, the potential for trading profitability in the
wholesale electricity markets and/or Balancing Mechanism,
performance of the Company's investments, and the availability of
projects which meet the Company's minimum return parameters in
accordance with the Company's investment policy.
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END
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