RE Royalties enters $50-million in letters of intent

Executive Summary

• RE Royalties Ltd. announced significant near-term investment opportunities, entering into approximately $50 million in letters of intent for renewable energy projects across the US, Maldives, and Canada.
• The company extended a $3 million secured loan with Powerbank Corp., increasing the interest rate to 12% and the royalty rate to 0.80%, while substantially repaying its Series 1 green bonds.
• The company listed on the Frankfurt Stock Exchange (symbol Y2V), appointed Alexa Blain to the board, and declared a cash dividend of one cent per share, shifting its dividend policy from quarterly to annual.

Key Details

• Near-Term Investment Opportunities:
  • Entered into approximately $50 million in letters of intent.
  • Projects include solar, wind, energy storage, and distributed generation.
  • Geographic focus: United States, Maldives, and Canada.
  • Clients include both existing and new partners.
  • Goal: Increase asset base and scale recurring revenues through diversified, high-quality renewable energy assets.
• Current Investment Portfolio Update (Powerbank Corp.):
  • Extended a current secured loan investment of $3 million with a wholly owned subsidiary of Powerbank Corp.
  • Loan term extended by one year.
  • Interest rate increased to 12% per annum.
  • Existing royalty rate increased to 0.80%.
  • Incentive: If the loan is repaid within six months, the royalty rate decreases to 0.65%.
• Series 1 Green Bonds Repayment:
  • Substantially repaid maturing Series 1 green bonds of approximately $10 million during the fourth quarter.
  • Final tranche of $300,000 due for repayment in the first quarter of 2026.
  • Marks five years since the launch of the green bond program.
  • Green Bond Framework received a "dark green" rating (highest level) from S&P Global Ratings Shades of Green.
• Board Appointment:
  • Alexa Blain appointed to the board of directors following the AGM on Dec. 8, 2025.
  • Replaces Paul Larkin, who did not stand for re-election.
  • Blain is co-founder and managing partner of Deetken Impact; former executive at African Alliance, CPPIB, and Macquarie Group.
• Listing on Frankfurt Stock Exchange:
  • Common shares commenced trading on the Frankfurt Stock Exchange under symbol Y2V.
  • Complements primary listing on the TSX Venture Exchange.
  • Aims to expand reach to European and global investors and enhance trading liquidity.
• Dividend Declaration and Policy Change:
  • Declared a cash distribution of one cent ($0.01) per issued and outstanding common share.
  • Payable on Jan. 21, 2026, to shareholders of record on Dec. 31, 2025.
  • Designated as a dividend for Canadian Income Tax Act purposes.
  • Policy Change: Board approved a shift from quarterly to annual dividend declarations to enhance financial flexibility for capital deployment.

Notable Quotes

• Peter Leighton, Chief Operating Officer: "These near-term opportunities reflect the strength of demand for flexible, innovative capital in the renewable energy sector, especially given the current policy environment in the United States. We have significant interest from participating in key business development conferences in 2025. We are focused on disciplined capital deployment, strong risk management and increasing accretive long-term value for our shareholders."
• Bernard Tan, Chief Executive Officer: "This extension demonstrates the successful long-term partnership between the company and Powerbank, by providing support for Powerbank's growing portfolio of solar and battery storage projects. The extension underscores the value of royalty-based capital for renewable energy developers and operators seeking long-term stability and scalability."
• Bernard Tan, Chief Executive Officer (on Frankfurt Listing): "Our Frankfurt listing marks an important step in broadening our global presence. Europe is at the forefront of renewable energy investment, and this listing enhances our visibility among a wider international investor base. This listing will enhance trading liquidity for the company's shares, provide broader access to European and international investors, and strengthen global awareness of RE Royalties' role in financing renewable energy projects."
• Marchand Snyman, Chairman of the Board: "On behalf of the board and shareholders, we are pleased to welcome Ms. Alexa Blain to the board. As a dedicated long-term shareholder of the company with extensive global experience in climate finance, her experience will be invaluable as we focus on growing our portfolio."