Acquisition of 46.4MWp Solar Portfolio

RNS Number : 6918K

Bluefield Solar Income Fund Limited

23 December 2022

 

23 December 2022

Bluefield Solar Income Fund Limited

('Bluefield Solar' or the 'Company')

Acquisition of 46.4 MWp Solar Portfolio

· 46.4 MWp UK portfolio of two large ground mounted solar assets

· 1.4 ROC assets which have been operational since 2015

· c.60% proportion of contracted and regulated projected revenues

· Equity consideration of £28.7 million, funded through the Company's Revolving Credit and Accordion Facility ('RCF')

Bluefield Solar (LON: BSIF), the UK income fund focused on acquiring and managing UK-based renewable energy and storage assets to provide growing dividends for its shareholders whilst furthering the decarbonisation of the energy system, is pleased to announce the successful acquisition of a 46.4 megawatt peak ('MWp') operational solar portfolio from Fengate Asset Management, a leading North American firm specialising in real assets.

The enterprise value of the portfolio is £56.0 million, including the economic benefit of all cashflows from May 2022. The portfolio contains £27.3 million of long-term amortising debt provided by Macquarie.  

The portfolio consists of two ground mounted solar photovoltaic ('PV') plants, a 39.3 MWp plant ('Raventhorpe') located in Scunthorpe, Lincolnshire and a 7.1 MWp facility ('Roanhead') located in Barrow-in-Furness, Cumbria.

Both solar sites are accredited under the Renewable Obligation Certificate ('ROC') regime with a tariff of 1.4 ROCs. In the period 2022 to 2035, the proportion of contracted and regulated revenues from the portfolio is projected to be approximately 60%.  

Following the acquisition, the Company's total outstanding debt has increased to £537 million (including RCF drawings of £120 million) and the total installed capacity of its portfolio has grown to 813 MWp. The leverage level of the Company has increased from 37% to c.40% of Gross Asset Value.

John Scott, Chairman of Bluefield Solar, said: "We are delighted to have acquired this high-quality portfolio of operating assets from Fengate Asset Management. The portfolio includes a high proportion of contracted and regulated revenues, and so represents a natural complement to the Company's significant development pipeline of new build solar and storage projects. Furthermore, the acquisition underpins the Board's confidence in delivering our FY 2022/23 target dividend of not less than 8.40pps (FY 2021/22: 8.12pps)."

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For further information:

Bluefield Partners LLP (Company Investment Adviser) James Armstrong / Neil Wood / Giovanni Terranova	Tel: [phone] www.bluefieldllp.com
Numis Securities Limited (Company Broker) Tod Davis / David Benda	Tel: [phone] www.numis.com
Ocorian (Company Secretary & Administrator) Patrick Ogier	Tel: [phone] www.ocorian.com
Media enquiries: Buchanan (PR Adviser) Henry Harrison-Topham / Henry Wilson	Tel: [phone] www.buchanan.uk.com [e-mail]

Notes to Editors

About Bluefield Solar

Bluefield Solar is a sterling income fund focused on acquiring and managing renewable energy and storage projects in the UK, to provide long term, growing dividends for its shareholders whilst furthering the decarbonisation of the energy system.  Not less than 75% of the Company's gross assets will be invested into UK solar assets.  The Company can also invest up to 25% of its gross assets into other technologies, such as wind and storage.  The majority of the Company's revenue streams are regulated and non-correlated to short term UK energy market fluctuations.  Bluefield Solar owns and operates one of the UK's largest, diversified portfolios of solar assets with a combined installed power capacity in excess of 800 MWp.

Bluefield Solar is listed on the Main Market of the London Stock Exchange and is a member of the FTSE 250, classified within the Closed End Investments subsector.

Further information can be viewed at   www.bluefieldsif.com

About Bluefield Partners

Bluefield Partners LLP was established in 2009 and is an investment adviser to companies and funds investing in renewable energy infrastructure.  It has a proven record in the selection, acquisition and supervision of large-scale energy assets in the UK and Europe.  The team has been involved in over £4 billion renewable funds and/or transactions in both the UK and Europe, including over £1 billion in the UK since December 2011.

Bluefield Partners LLP has led the acquisitions of, and currently advises on, over 100 UK based solar PV assets that are agriculturally, commercially or industrially situated.  Based in its London office, it is supported by a dedicated and experienced team of investment, legal and portfolio executives.  Bluefield Partners LLP was appointed Investment Adviser to Bluefield Solar in June 2013.

 

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