18 October 2013
BLUEFIELD SOLAR INCOME FUND LIMITED
Fourth Project Acquisition
Bluefield Solar Income Fund Limited (the "Fund") is pleased to announce that it has entered into binding contracts to acquire its fourth UK large-scale solar plant. The plant, located in Oxfordshire, will be acquired for a total investment consideration of £17 million, taking the Fund's total commitments to date to £55.3m. In total, the Fund has invested into solar plants with a capacity of 48 MegaWatt Peak ("MWp"). 41MWp are expected to benefit from 1.6 Renewable Obligation Certificates ("ROC"s), at an investment value of £1.12m per MWp, with the balance invested into a 2 ROC project.
The agricultural site will be one of the largest in the region. The plant is expected to commence electricity generation in quarter 1 2014 and qualify under the 1.6 ROC support banding. It has been developed, and is being constructed, by Solarcentury, one of the leading specialist UK solar contractors. It is the second major acquisition made by the Fund from Solarcentury.
Following the sale of the project, under the terms of the contract Solarcentury will warrant the performance of the plant for an initial period and will undertake the ongoing operation and maintenance of the plant under a separate agreement.
The Fund can confirm that, based on the existing committed projects and the terms agreed on this portfolio, it remains on course to deliver against its target dividend of 4 pence per ordinary share in relation to the first financial year ending 30 June 2014, and 7 pence per ordinary share in respect of the Company's second financial year, with the intention of this rising annually with RPI thereafter.
Bluefield Partners LLP ("Bluefield"), the Fund's Investment Adviser, will seek to maximise the return by active management strategies across the invested portfolio. The Fund is insulated from development risk by the contractors taking full responsibility for the construction and delivery of the plants. The Fund takes over assets once grid-connected and operational, and three of the four plants invested to date are either operational or guaranteed by the contractor to be grid-connected by December 2013.
Bluefield has agreed terms on a further three large scale sites that will take the Fund to over 75% committed. Combined with the four acquisitions already announced by the Fund, the new assets are expected to take the Fund's total commitments to c. £100m, with a total energy capacity of c. 83 MWp.
The Fund expects to make further announcements shortly.
Enquiries:
James Armstrong / Mike Rand / Giovanni Terranova
Bluefield Partners LLP - Company Investment Adviser
Tel: +44 (0)20 7078 0020
Tod Davis / David Benda
Numis Securities Limited - Company Broker
Tel: +44 (0)20 7260 1000
Kevin Smith
Heritage International Fund Managers Limited - Company Secretary & Administrator
Tel: +44 (0)1481716000
Note to editors
About Bluefield Solar Income Fund Limited (the "Fund" or "BSIF")
BSIF is a newly incorporated Guernsey-registered investment fund focusing on large scale agricultural and industrial solar assets. The Fund raised gross proceeds of £130 million in July 2013 through an initial public offering ("IPO") of shares on the main market of the London Stock Exchange.
The Fund 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.
About Bluefield Partners LLP ("Bluefield")
Bluefield was established in 2009 as a specialist investor into solar energy. Bluefield's team has a proven track record in the selection, acquisition and management of large scale energy and infrastructure assets in the UK and Europe.
The managing partners have been involved in over GBP350m of solar photovoltaic ("PV") funds and/or transactions in both the UK and Europe since 2008, including over GBP170m in the UK since December 2011.
Bluefield was appointed Investment Adviser to the Fund in June 2013.
About Solarcentury
Solarcentury is one of the most respected solar companies in the world. Founded in 1998, it has been around since the early days of the solar industry and has been part of the evolution that has made PV the attractive investment it is today. Solarcentury has put solar on a greater variety of sites than any other company in the industry, and has won multiple awards for product innovation.
Solarcentury works directly with its clients to design and install commercial, industrial and utility scale solar. It also supplies its products and services to installers and distributors. All of its customers benefit from its experience in terms of engineering quality, superior yields and sheer breadth of deployment.
Solarcentury is a big believer in helping solar PV change the world for the better and it contributes 5% of its net profits every year to the charity it founded, SolarAid, which aims to eradicate kerosene lamps from Africa by 2020.
Solarcentury has offices in the UK, Italy, The Netherlands and a growing presence in Africa and Latin America.
