Execution of Phase 2 of Strategic Partnership

Bluefield Solar Income Fund Limited

22 July 2024

 

22 July 2024

Bluefield Solar Income Fund Limited

('Bluefield Solar' or the 'Company')

Execution of Phase Two of Strategic Partnership with GLIL Infrastructure ('GLIL')

Sale of 50% stake in 112MW Operational assets

·   GLIL to acquire a 50% stake in a 112MW PV portfolio of 1.4 and 1.3 ROC assets, (the "Partnership Portfolio") as part of c£70 million strategic partnership investment, in line with the Company's March 2024 NAV of £817m.

·    Proceeds from the sale will be used to repay a portion of the Company's RCF, as well as to provide funding for construction of approximately 17MW of development assets as the initial commencement of Phase three of the Strategic Partnership

Bluefield Solar (LON: BSIF), the London listed UK income fund focused primarily on acquiring and managing solar energy assets, is pleased to report the signing of Phase two of its long-term strategic partnership ('Strategic Partnership') with GLIL which is the agreement to sell a 50% stake in a 112MW portfolio of UK solar assets currently owned by Bluefield Solar.

GLIL is a partnership of UK pension funds, investing into core UK infrastructure, including Local Pensions Partnership Investments, Greater Manchester Pension Fund, Merseyside Pension Fund, West Yorkshire Pension Fund and Nest, and has a £3 billion portfolio of infrastructure assets.

The Bluefield Solar portfolio of 112MW is diversified across southern and central England and comprises 9 operating sites all backed by Renewable Obligation Certificates ('ROCs'); 78MW 1.4 ROC accreditation and 34MW 1.3 ROC accreditation.

Following amalgamation with the acquisition of the LightsourceBp Portfolio, in which Bluefield Solar acquired a 9% equity interest in tandem with GLIL under Phase One of the Strategic Partnership in December 2023, BSIF's equity stake across the combined portfolios will increase to c.25%.

The acquisition is conditional on Bluefield Solar and GLIL being approved buyers under the Planning Act 2008 for Nationally Significant Infrastructure Projects, due to Bluefield Solar's interest in over 1GW of generating assets. Approval is expected in mid-August 2024.

The Company's RCF drawing currently stands at £184 million, with long term amortising debt being £423 million. Overall, the Company has total outstanding debt of £607 million, with a leverage level of circa 43% (based on the March 2024 Net Asset Value).

As announced on 22 December 2023, in Phase three, Bluefield Solar and GLIL intend, via the Strategic Partnership, to commit capital to a selection of the Company's development pipeline, assuming market conditions are supportive. The identified c17MWp of Auction Round 4 Contracts for Difference ("CfD") development assets are expected to be grid connected within the next twelve months.

The Bluefield Solar board reiterates its guidance in delivering its raised full year dividend of not less than 8.80pps for the period ending 30 June 2024 (increased from 8.60pps paid for the period ended 30 June 2023).

John Scott, Chairman of Bluefield Solar, said: "We are delighted to announce a landmark transaction for the sector in the completion of the second phase of the Company's strategic partnership with GLIL, providing a significant source of capital for BSIF while validating the Company's Net Asset Value through this endorsement from an institutional investor of the highest calibre. The cash proceeds of c£70 million will be used prudently to reduce the Company's leverage while also enabling the Company to commit further capital to BSIF's significant proprietary development pipeline. The new projects in development provide an exciting opportunity for significant value accretion for shareholders while also expanding the UK's solar resources to help achieve our national climate goals."

Julia Carter, Deputy Portfolio Manager at GLIL Infrastructure, added: ""This acquisition represents the continuation of our strong strategic relationship with the team at Bluefield Solar, as well as our commitment on behalf of our members to helping drive the energy transition. Not only do these assets make a welcome addition to our growing green energy portfolio, but they maintain our strong track record of backing core UK infrastructure projects. Along with our members and Bluefield Solar, we recognise our role as custodians of the future. We have a responsibility to ensure our investments help decarbonise industries, but also support local communities through regeneration projects and job creation and help drive the economy forwards."

For further information:

Bluefield Solar Income Fund:

Bluefield Partners LLP (Company Investment Adviser) James Armstrong / Neil Wood / Giovanni Terranova	Tel: [phone] www.bluefieldllp.com
Deutsche Numis (Company Broker) Tod Davis / David Benda / Matt Goss	Tel: [phone] www.dbnumis.com
Ocorian (Company Secretary & Administrator) Chezi Hanford	Tel: [phone] www.ocorian.com
Media enquiries: Burson Buchanan (PR Adviser) Henry Harrison-Topham / Henry Wilson	Tel: [phone] www.bursonbuchanan.com [e-mail]

  Citypress (on behalf of GLIL Infrastructure)             Tel:  [phone]

 Jamie Williamson                                                                                 [e-mail]

Notes to Editors

About Bluefield Solar

Bluefield Solar is a London listed income fund focused primarily on acquiring and managing solar energy assets.  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. Bluefield Solar owns and operates a UK portfolio of 834MW, comprising 776MW of solar and 58MW of onshore wind.

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 £6.5 billion renewable funds and/or transactions in both the UK and Europe, including over £1.6 billion in the UK since December 2011.

Bluefield Partners LLP has led the acquisitions of, and currently advises on, over 200 UK based solar 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.

About GLIL Infrastructure

GLIL is a partnership of UK pension funds which invests in Britain's future - creating jobs, supporting communities and helping to power the economy. It is a proven investor, with a fund specially designed to help pension fund members tap into the stable, inflation-linked returns that infrastructure investment offers. GLIL manages £4.1 billion of committed capital, with more than £3 billion deployed into a growing portfolio of infrastructure assets spanning renewable energy, water and ports, trains, hospitals and schools. It invests on behalf of pension funds and pools including Local Pensions Partnership Investments, Greater Manchester Pension Fund, Merseyside Pension Fund, West Yorkshire Pension Fund and Nest, the government-established DC workplace pension provider. For more information on GLIL, including its history, and investment portfolio, please visit www.glil.co.uk.

 

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