Hazel Renewable Energy VCT 1 plc : Portfolio up...

Hazel Renewable Energy VCT1 plc
Hazel Renewable Energy VCT2 plc
Joint Announcement

Portfolio Update
20 December 2013

Hazel Renewable Energy VCT1 and its sister company, Hazel Renewable Energy VCT2, (together "the Hazel VCTs") are pleased to announce that they have completed the buy out of all other shareholders in a group of 6 ground-mounted solar projects commissioned in 2011 in which they already owned significant stakes.

The net funds raised for the transaction were approximately £63 million of senior debt raised via two holding companies named Lunar 1 and Lunar 2 ("the Lunars") which were incorporated for the purpose of financing the buy out for approximately £55 million.

The remaining capital from the debt raising will be available for distribution to the Hazel VCTs shareholders or for re investment and, across both Hazel VCTs, is expected to be approximately £7 million.  The directors will give consideration to distributing much of these funds to shareholders by way of special dividends in the first quarter of 2014.

The debt was provided by The Renewable Financing Company, a newly established conduit which funds itself via the issuance of bonds, arranged by Independent Debt Capital Markets LLP.

The Hazel VCTs' Investment Manager, Hazel Capital, believes there will be a substantial and positive impact on the Net Asset Value ("NAV") of both companies (before any dividend payments).  Further details of the transaction and estimates of the revised NAVs will be announced in January.

Ben Guest, Investment Manager and Managing Partner of Hazel Capital, said "This is a landmark transaction for the Hazel Renewable Energy VCTs and for the Renewable Energy sector in the UK.   Hazel Capital, as Investment Manager to the Hazel VCTs, is very proud of bringing together the different elements necessary to make this transaction a success and I would like to personally thank our team for their unrelenting hard work and our investors and counterparts for their trust and confidence in Hazel Capital."

The Chairmen of the Hazel VCTs, Michael Cunningham and Peter Wisher, have issued a joint statement commenting: "This innovative transaction gives the combined VCTs economic control over a major output of "green" energy, security of future cashflow and improved industrial logic at the expense of some limited additional risk of financial leverage.  Great care has been taken to ensure that the future cashflows will substantially exceed the debt repayment requirements which, when achieved, will enhance future shareholder value.

Hazel Capital LLP is a UK-based, FCA registered renewable energy infrastructure investment firm and is among the leading operators of ground-mounted solar in the UK and has a wealth of expertise within the clean technology sector as a whole.

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Hazel Renewable Energy VCT 1 plc via Globenewswire

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