As well as targeting high returns, the trust plans to grow its dividend progressively over time.
The first investment trust to list in 2021 is aiming to return 10% a year by investing in sustainable energy infrastructure.
Victory Hill raised £242.6 million for the launch of the VH Global Sustainable Energy Opportunities investment trust, although this fell short of the £400 million it said it was targeting when it announced its intention to float back in November. The ticker will be GSEO.
The trust, which is expected to start trading on the London Stock Exchange tomorrow (2 February), will invest in a diversified portfolio of global sustainable energy infrastructure assets, mostly in EU and OECD countries. It will only back projects that are already in operation or under construction, but not those still in development. The portfolio will aim to be diversified across geographies and proven technologies, to reduce the risks of over-exposure to specific energy markets.
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A growing dividend
Global Sustainable Energy Opportunities is targeting a net asset value total return of 10% a year, net of costs and expenses. It will aim to pay an initial annual dividend of 1p per ordinary share for the first financial year after IPO, and 5p a year for each following financial year, and plans to grow the dividend progressively over time.
Trust chairman Bernard Bulkin says the portfolio will play its role in the global transition towards more sustainable sources of energy.
“The board is very pleased with the strong, broad-based response from investors to the proposition of VH Global Sustainable Energy Opportunities plc. It reflects the confidence from the investment community in the high calibre team at Victory Hill, our investment advisers. We have an excellent pipeline of projects which will now move forward, playing our part in the energy transition,” said Bulkin.
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“The team at Victory Hill are very pleased with the recognition and trust investors have given us,” adds Victory Hill Capital Advisors’ chief executive Anthony Catachanas. “It is also very clear that investors value our investment philosophy, its global focus on the energy transition as a means to achieve a more sustainable energy future. We look forward to deploying the capital in the coming weeks and months.”
Victory Hill describes itself as a specialist investment firm targeting direct investments in global energy infrastructure that support the UN Sustainable Development Goals, with the aim of facilitating an orderly energy transition to a net zero carbon future.
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