Riverstone Credit continues its shift towards green and sustainability-linked lending – During 2021, Riverstone Credit Opportunities experienced a slight decline in its NAV from $1.04 to $1.02, but a narrowing of its discount as the stock price fell from $0.683 to $0.87. the dividend was held at 7 cents per share, but this was not covered by earnings – which were 4.89 cents – and caused the net asset value to fall. There have been a few When part of a portfolio is invested in cash or cash-equivalent securities, as opposed to securities which are the portfolio's main focus, the cash component has no market exposure. This effect is referred to as cash drag.
In a situation where markets are rising, cash tends to underperform markets and cash drag is negative. Conversely, where markets are falling, cash will tend to outperform the market and cash drag will be positive." class="glossary_term">cash trail loans having been repaid early – in 2021, the wallet was invested on average at 72%.
The fund has made six investments in 2021, focusing on upstream exposure, to target energy infrastructure and infrastructure services and energy transition investments. In the second half of 2021, there were two new investments, Circulus Holdings and Streamline Innovations.
Circulus is a sponsor-backed green loan to a recycler of low-density polyethylene for use in food-grade packaging, injection molding applications, bags, films and other premium products. Being classified as a green loan under the guidelines of the LSTA (Loan Syndications and Trading Association), the use of the product must be linked to specific green initiatives and carefully monitored to ensure compliance.
Streamline Innovations is a sponsor-backed sustainability-linked loan to a leader in environmentally advanced solutions and processing equipment for hydrogen sulfide in energy, renewable fuels, wastewater, landfill gas, biogas and industrial processes. Streamline was the company’s second sustainability-linked loan, where loan pricing increases if key sustainability goals are not met.
There was also a full completion of the fund’s community solar investment (Aspen Power Partners) in October with a gross return of 36.0%. SORTING and 1.27x gross ME.
The fund also recorded an impairment loss on an investment.
The pipeline of potential new deals is focused on green loans and sustainability-related loans, as has been the case with all of its recent investments.
As of December 31, 2021, the fund had committed more than 78.9% of capital to investments and had $65.9 million net invested, or 70.0% of net available capital, and a cash balance of over $27 million. Capital that has been committed but not yet invested continues to generate income because the company charges fees on committed but unused capital.
RCOI: Riverstone Credit continues its shift towards green and sustainability-linked lending
previous story | next story