Completion of Acquisition

RNS Number : 8691T

Bluefield Solar Income Fund Limited

09 October 2014

 



Bluefield Solar Income Fund Limited

9 October 2014

Completion of acquisition

Further to the Admission this morning of the Consideration Shares the Board of Bluefield Solar Income Fund Limited (the "Company") is pleased to announce that the acquisition of the Target Portfolio has been completed. The Target Portfolio is held within two Special Purpose Vehicles ("SPV"), KS SPV5 Ltd and Bluefield Goshawk Ltd, and have a combined energy capacity of 6.212MWp. KS SPV5 Ltd holds Durrant's Farm, the largest asset in the Target Portfolio. It was built by REC Systems Ltd ("REC"), the specialist contracting arm of REC Group, the global solar manufacturer and installer. The remaining 11 assets are held within Bluefield Goshawk Ltd. They were built by British Gas New Heating ("BG"), the specialist solar contracting arm of Centrica. The assets were commissioned between July 2011 and September 2012.

Solar plant on Durrant's Farm

Durrant's Farm is the largest single asset in the Target Portfolio and at 4.997MWp amounts to 80 per cent. of the Target Portfolio's total output capacity. It was constructed and grid-connected prior to the tariff reductions in 2011 and qualified for 30.9 pence per kWh FIT with guaranteed minimum FIT export tariff of 3 pence per kWh for 25 years rising with RPI (with the 2014/2015 year's FIT being 34.1 pence per kWh). It is the only asset within the portfolio with project finance in place with a total outstanding balance of GBP15,243,064 as at 2 September 2014. The project finance is provided by Bayerische Landesbank, London Branch and the fixed-rate loan is fully amortising over 18 years until its maturity in September 2028 at a weighted average rate of 5.22 per cent. The project finance is limited recourse to the assets of the borrower under the financing (KS SPV5 Ltd).

Solar plants on Thames Water Assets

The 10 Thames Water assets are small, ground based operational solar farms based on the sites of water and waste processing plants owned by Thames Water Utilities (Thames Water). They are all in the south east of England. The total energy capacity is just under 1MWp. All the sites qualified for 20-25 year FIT and have 25 year RPI linked PPAs with Thames Water. All the plants were built by and are currently operated by BG.

Solar plant on Adnams Bio Energy Asset

The Adnams Bio Energy asset is a ground-based solar plant which supplies power directly to a biogas plant owned by Adnams Bio Energy. The solar plant was grid-connected prior to the drop in FIT in August 2011. The Adnams Bio Energy asset derives 100 per cent. of its net revenue for FIT which was qualified at 30.7p per kWh for 25 years rising with RPI (with the current year's FIT being 34.1 pence per kWh).

Since its Initial Public Offering ("IPO") in July 2013, the Company has invested into twelve, wholly owned, solar plants with a combined energy capacity of c. 143 MWp.

Capitalised terms used but not defined in this announcement will have the same meaning as set out in the Circular to shareholders dated 9 September 2014.

Enquiries:

James Armstrong / Mike Rand / Giovanni Terranova

Bluefield Partners LLP - Company Investment Adviser

Tel: [phone]

Tod Davis / David Benda

Numis Securities Limited - Company Broker

Tel: [phone]

Kevin Smith

Heritage International Fund Managers Limited - Company Secretary & Administrator

Tel: [phone]

Note to editors:

About Bluefield Solar Income Fund Limited (the "Company" or "BSIF")

BSIF is a Guernsey-registered investment company focusing on large scale agricultural and industrial solar assets. The Company raised gross proceeds of GBP130m in July 2013 through an initial public offering ("IPO") of shares on the main market of the London Stock Exchange. It raised a further GBP13m capital via a tap issue in February 2014.

The Company seeks to provide shareholders with an attractive return, principally in the form of semi-annual income distributions, by investing in a diversified portfolio of solar energy assets, each located within the UK, with a focus on utility scale assets and portfolios on greenfield, industrial and/or commercial sites. The Company delivered on its target dividend of 4 pence per share in relation to the first financial year ending 30 June 2014. It is seeking to deliver 7 pence per share in respect of the Company's second financial year, rising with RPI thereafter.

About Bluefield Partners LLP ("Bluefield")

Bluefield was established in 2009 and is an investment adviser to companies and funds investing in solar energy infrastructure. The Investment Adviser's team has a proven record in the selection, acquisition and supervision of large scale energy and infrastructure assets in the UK and Europe. The team has been involved in over GBP500m of solar photovoltaic ("PV") funds and/or transactions in both the UK and Europe since 2008, including over GBP235m in the UK since December 2011.

Bluefield has led the acquisitions, and currently advises on over 50 UK based solar assets that are agriculturally, commercially or industrially situated. Based in its London office, Bluefield's partners are supported by a dedicated and highly experienced team of investment, legal and portfolio executives.  Bluefield was appointed Investment Adviser to the Company in June 2013.

 

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