"The FTSE 250 trust confirmed today that it has shelved plans to convert itself into a conventional operating company and will instead begin selling off its portfolio of energy-efficiency assets."
"For the army of private investors who subscribed to SEIT's nine capital raisings between 2018 and 2022, the decision marks the bitter end of a story that once looked like a copper-bottomed route into the green transition."
"The shares, which were issued at £1 or more, closed at 45p yesterday, a punishing 49 per cent discount to stated net asset value."
SDCL Efficiency Income Trust has abandoned its rescue plan due to pressure from Saba Capital, opting for a managed wind-down. The trust, which raised over £1.1 billion since 2018, will sell its energy-efficiency assets. Investors, initially attracted by a 5% yield, now face significant losses as shares plummet to 45p, a 49% discount to net asset value. The shift reflects broader market skepticism about the trust's asset valuations amid rising interest rates and Saba Capital's influence on investment trusts.
Read at Business Matters
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