The risks of investing in emerging market renewables was highlighted today after ThomasLloyd Energy Impact Trust (TLEI ) requested the temporary suspension of its shares citing ‘material uncertainty’ over the valuation of its largest construction project in India.

The £148m investment trust, the last to launch on the London Stock Exchange in December 2021, is the second to suspend this year due to a four-month delay in its annual report after Home Reit (HOME), the troubled homeless accommodation provider.

Chair ThomasLloyd Energy Impact Trust said the company was unable to issue its 2022 accounts by the 28 April deadline while it sought to clarify the position of a 200-megawatt solar project being built by its Delhi-based platform SolarArise.

The rising cost of components and construction ‘indicate that additional equity is likely to be required in order to construct the project, potentially decreasing the project returns and its commercial viability.

‘In addition, the company wishes to undertake further work to assess the quantum of certain of its liabilities,’ Inglis said.  

The construction-ready asset was valued at $13.9m at 30 September, the company said, which its joint broker Peel Hunt said accounted for 8% of its net asset value following a fund raising in November.

Since mid-February, the sterling shares have fallen 20%. They were suspended at 84p, 16% below their 100p listing price at launch 16 months ago.