UK fund JLEN Environmental eyes new projects after GBP 61m equity raising

JLEN Environmental Assets Group Ltd (LON:JLEN) has closed an oversubscribed share issuance, securing GBP 60.7 million (USD 81.3m/EUR 72.8m) to repay debt and to fund a pipeline of potential environmental infrastructure projects to support the energy transition.

JLEN is issuing a little over 60.1 million new shares at a price of GBP 1.01 apiece. The new shares will start trading on February 1.

Launched in 2014, the investment trust, formerly known as John Laing Environmental Fund, has a portfolio of 39 assets in onshore wind, solar, hydropower, waste and bioenergy as well as anaerobic digestion and battery storage. This includes six solar assets of 80.2 MW in total, the Codford Biogas plant in Wiltshire as well as full ownership of Gigabox South Road (GSRL), a company that owns the rights to develop the 50-MW lithium-ion battery energy storage plant West Gourdie in Dundee, Scotland.

JLEN announced the placing and offer for subscription in mid-January, pricing the issuance at a discount of 2.7% to its last applicable close.

The fund, which is managed by Foresight Group, has said that it plans to focus on assets that would ensure higher returns, including battery storage, biomethane refuelling stations and energy-from-waste plants. In early January, JLEN sold its two French onshore wind farms for EUR 5.9 million (USD 6.6m).

JLEN is targeting a dividend of GBP 0.68 per share for the fiscal year to March 31. Its market capitalisation stands at roughly GBP 613 million.

(GBP 1 = USD 1.339/EUR 1.200)

(EUR 1 = USD 1.116)

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