SEIT:Update

SDCL Efficiency Income Trust plc

Disposal and gearing reduction

SEIT is pleased to announce the sale of a diversified portfolio of operational and yielding energy efficiency infrastructure assets to Kyotherm SAS (“Kyotherm“), for a total enterprise value of up to c.£105 million (the “Disposal“). The portfolio includes the Company’s interests in Capshare Future Energy Solutions (asset portfolios), Sparkfund, Moy Park Biomass, Tallaght Hospital, Baseload, Lycra, SEEIPL, Northeastern US CHP, CPP Biomass, Supermarket Solar UK and GET Solutions (the “Portfolio“). Kyotherm is a leading investment company dedicated to financing decarbonised heat and energy efficiency projects globally.

The Disposal is consistent with the Company’s stated priority to reduce gearing through asset sales and helps streamline the Company’s overall portfolio which now has greater focus on Commercial and Industrial customers and District Energy solutions. The agreed price represents a discount of c.9%^[1] to the carrying value of the Portfolio as at 30 September 2025, and the Disposal is expected to result in a reduction to the Company’s NAV of c. 1.2p.

The Disposal consideration of up to c.£105 million includes an earnout of up to c.£4 million, payable to the Company if agreed performance conditions are met over the next 3-5 years. Day-one cash proceeds expected to be received on completion are c.£84 million, after permitted distributions, transaction costs, debt and debt-like items. Completion of the Disposal is subject to customary closing conditions and is expected by mid-April 2026. Goldman Sachs International acted as sole financial adviser to the SEIT entity involved in the Disposal.

Financial Impact

The Company intends to apply proceeds of the Disposal primarily towards reducing drawings under the existing revolving credit facility. This, along with near term project-level debt reductions, is targeted to bring the pro forma aggregate gearing as a percentage of NAV as at 30 September 2025 to c.65%.

There is no change to the Company’s target dividend of 6.36p for the current financial year. The NAV for the financial year ended 31 March 2026 will be reported in June 2026.

Outlook

As SEIT has previously stated, many institutional and financial investors within the mid-market and energy transition sectors are under pressure to sell assets in order to retire financing or deliver distributions, creating excess supply and increasing demand for scarce capital. This dynamic is enabling buyers to secure assets below carrying values and is illustrative of a strong buyers’ market.

The positive outcome achieved by the Disposal announced today is the result of months of disciplined execution and reflects the attractive, yielding nature of the Portfolio. As with the Company’s other disposals to date, the Disposal is being made to strategic investors, who can realise greater operational benefits. Given the competition for capital in the private capital markets, the Board considers it unlikely that other individual asset sale processes would deliver equivalent shareholder value in the near to medium term, a factor that will be considered as part of the year-end valuation process, including the calculation of the Company’s NAV.

Tony Roper, Chair of SEIT, commented:

“The Board is pleased to announce today’s disposal, in line with our near-term objectives set out in our interim results in December. The net proceeds of the disposal will primarily be used to reduce gearing, targeted to bring aggregate debt levels to c.65% of NAV.

The Board’s intention remains to reduce gearing and generate portfolio liquidity. However, the sale of a high yielding asset portfolio, at even a modest discount to NAV and which has taken longer than anticipated, illustrates the challenges of achieving disposal activity at reasonable valuations. The Board continues to view the status quo, including the current share price discount to NAV, as untenable and is working with the Manager to progress strategic solutions with a clear focus on achieving value for our shareholders.”

Jonathan Maxwell, CEO of SDCL, commented:

“This disposal reflects the commitment and determination shown across our team to deliver strong outcomes for shareholders in a highly challenging market.

The transaction results in a more streamlined portfolio, now increasingly focused on Commercial and Industrial customers and District Energy solutions, where we see the greatest opportunity to drive long‑term value through energy efficiency.”