General Update

RNS Number : 4677H

Bluefield Solar Income Fund Limited

25 March 2020

 

25 March 2020

Bluefield Solar Income Fund Limited

('Bluefield Solar' or the 'Company')

COVID-19 Contingency Planning and General Update

Bluefield Solar (LON: BSIF), a sterling income fund that invests in UK-based solar assets, reconfirms its guidance of a full year dividend of 7.90pps for the financial year ending June 2020. This will be fully covered by earnings and post debt amortisation. Based on yesterday's closing share price the dividend yield on the forecast full year dividend was 7.05%.  

COVID-19 Contingency Planning

The Company's key service providers have all successfully implemented remote working policies for the individuals working on Bluefield Solar.

Bluefield Partners, the London based Investment Adviser, has moved ten Bluefield Solar focused personnel out of its London office and they are now working remotely overseeing the investment performance of the existing assets, portfolio enhancement (including lease extensions) and the Company's power sales strategy. Bluefield Services, the Bristol-based business that oversees asset monitoring, reporting, technical asset management and financial reporting has 28 employees successfully working remotely. Bluefield Operations has 19 employees who are regionally based and focused on the operation and maintenance of the assets. It is anticipated that a number of these employees will be categorised as 'Key Workers' as defined by the Government's recent announcement, a status that should enable them to carry out their activities effectively.

In addition, as part of the winter maintenance programme, Bluefield Services has undertaken a major review of the status of the portfolio's spare parts and has ordered replacements where necessary. Bluefield Operations has been working on general maintenance across the portfolio and transformer and inverter replacement on specific sites.

General Update: Visibility of Earnings and Financial Headroom

Over 60% of the Company's revenues are regulated and non-correlated to market based power prices, increasing in line with RPI and with an average duration remaining of 15 years. The balance of revenues is derived from the sale of electricity via power purchase agreements (PPAs). The Company has 94% of its revenues contracted until the end of the current financial year, 88% of its revenues contracted until the calendar year end and 77% until the end of the financial year 2021, providing excellent visibility of earnings over the current and next financial year. The PPAs providers are investment grade entities. The Company has no subsidy free assets and no assets are in construction.

The Company's current leverage level is 32% (a combination of long term debt and short term credit facility) to Gross Asset Value. All long term debt is fully amortising over an average tenor of 14 years and is without the requirement for refinancing. The debt service cover ratio is over 2.5 times covered. The Company has also drawn £44 million from its short-term credit facility and is in place until 30 September 2022 (if the facility's one year extension is exercised by the Company). 

As indicated in previous announcements the Company's policy of increasing the dividend in line with RPI in future financial years remains under review, especially in light of the recent fall in power prices.

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) Kevin Smith	Tel: [phone] www.ocorian.com
Media enquiries: Buchanan (PR Adviser) Henry Harrison-Topham / Victoria Hayns / 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 UK-based solar projects to generate renewable energy for periods of typically 25 years or longer.  The Company's primary objective is to deliver to its shareholders stable, long term sterling income via quarterly dividends, which are linked to RPI.  The majority of the Group's revenue streams are regulated and non-correlated to traditional markets.  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 478 Megawatt peak (MWp).

Further information can be viewed at www.bluefieldsif.com

About Bluefield Partners LLP ('Bluefield')

Bluefield was established in 2009 and is an investment adviser to companies and funds investing in solar energy infrastructure.  It 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 £1.5 billion of solar PV funds and/or transactions in both the UK and Europe since 2008, including over £800 million in the UK since December 2011.

Bluefield has led the acquisitions of, and currently advises on, over 85 UK based solar PV 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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