OVERLAND PARK, Kan.--(BUSINESS WIRE)--Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF) announced a 12.5% increase in its monthly distributions to $0.09 per share beginning in March and payable on the dates noted below. This distribution falls within the managed distribution target range of 6-8% of the Fund’s trailing average NAV and represents an annualized distribution rate of 7.05% based on TEAF’s market price of $15.31 on January 14, 2022.
“This distribution increase demonstrates our constructive view on the underlying assets in the portfolio over a full cycle,” said Nick Holmes, Managing Director and Portfolio Manager. “Our conviction behind the shift to more sustainable investments remains strong as does our view of the expected long-term total return of the portfolio with its diversified asset base and income streams. As a result, we expect to monetize a portion of the total return over time and deliver that return to shareholders in the form of distributions.”
Upcoming distribution dates and amounts
TEAF monthly distributions are payable on March 31, 2022, April 29, 2022, and May 31, 2022, to shareholders of record on the respective dates of March 24, 2022, April 22, 2022, and May 24, 2022.
For book purposes, the source of distributions for TEAF is estimated to be approximately 90 to 100% ordinary income, with the remainder as return of capital. For tax purposes, the characterization will not be made until determination of earnings and profits after year end.
Monthly portfolio update
Additionally, an update on TEAF’s direct investments, portfolio asset allocation, structure types and impact statistics as of December 31, 2021 are provided on the company website here. On a monthly basis, details on each private deal that has taken place in the prior month will be published here. The list includes all deals completed since the fund’s inception through December 31, 2021. Updates will continue to be posted on a monthly basis until the fund reaches its target of 60% direct investments.
For additional information on this fund, please visit https://cef.ecofininvest.com/funds/teaf/.
TCA Advisors is the adviser to Ecofin Sustainable and Social Impact Term Fund and Ecofin Advisors Limited is the fund’s sub-adviser.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain statements that may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the fund and TCA believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the fund and TCA do not assume a duty to update this forward-looking statement.