18 June 2014
BLUEFIELD SOLAR INCOME FUND LIMITED
Tenth major acquisition within twelve months of listing, RBS revolving credit facility used for the first time
Bluefield Solar Income Fund Limited (the "Company") is pleased to announce that it has entered into binding contracts to acquire its tenth UK based, large-scale solar plant. The 17.5 MegaWatts Peak ("MWp") plant in Hertfordshire is being acquired for a total consideration of £19 million including transaction costs, debt costs and working capital. It is expected to qualify under the 1.4 Renewable Obligation Certificate ("ROC") regime.
Solarcentury will build the plant and will then warrant its performance for an initial period. It will undertake the ongoing operation and maintenance of the plant under a separate agreement.
Since its Initial Public Offering ("IPO") in July 2013, the Company has invested into ten solar plants with a combined energy capacity of 128 MWp. The proceeds of the £130 million IPO were fully committed with the Company's ninth investment in February, 2014, an investment that required a further placement of £13 million in order to complete the acquisition. This tenth acquisition sees the Company using, for the first time, part of the Royal Bank of Scotland plc's revolving credit facility ("Facility"), announced on 13 June, 2014.
The three-year Facility, for up to £50 million, including a working capital element, will provide the Company with a flexible source of funding to make additional acquisitions of solar energy assets in the UK. The Facility is secured against the existing Company assets and the margin over LIBOR is 225 bps with the maximum ratio of loan to net assets being 35%.
The Company can confirm that it expects 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.
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 (BSIF)
BSIF is a Guernsey-registered investment company focusing on large scale agricultural and industrial solar assets. It raised gross proceeds of £130 million in July 2013 through an initial public offering of shares on the main market of the London Stock Exchange. It raised a further £13 million in February, 2014 in an oversubscribed placement. In June, 2014, it agreed a three-year revolving credit facility with Royal Bank of Scotland plc, for up to £50 million.
BSIF 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 £400m solar energy transactions in both the UK and Europe since 2008, including over £235 million in the UK since December 2011. Bluefield has led the acquisitions, and currently advises on, over 50 UK based solar assets.
Bluefield was appointed Investment Adviser to the Company 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.
