Gore Street Energy Storage Fund PLC (LSE:GSF) intends to raise at least funds to take advantage of the growing opportunities in the industrial battery sector.
The funding, which will be through a 12-month C-share issuance programme after an initial ordinary issue, will also be accompanied by changes in its investment strategy to allow the trust to take advantage of more opportunities overseas and be more flexible with borrowing and currency hedging.
“The company intends to significantly increase the size of its portfolio and execute against its exclusive near-term pipeline of investments across the UK, US and EU in order to capitalise on the continued growth in demand for energy storage assets,” it said in a statement.
A change in dividend policy is also proposed with the plan going forward to pay a 7% yield on net asset value in a particular year with a minimum target payment of 7p.
Increments in the dividend will be 0.5p per year.
A shareholder vote on the proposals is scheduled for 11 April 2022.
Shore Capital, Gore Street’s house broker, said the trust wants to increase its borrowing powers to 50% of Gross Asset Value (GAV), up from 15% currently.
The amount of the portfolio invested outside of the UK and Ireland can also rise to 60% from 40% currently under the proposed changes.
Shares in Gore Street eased 3% to 113.5p.
--adds broker comment, share price --