25 January 2016
BLUEFIELD SOLAR INCOME FUND LIMITED
Credit Facility Extension and Six Acquisitions
Bluefield Solar Income Fund Limited (the "Company") is pleased to announce that an amended and restated facility agreement (the "Credit Facility") related to The Royal Bank of Scotland plc ("RBS") Revolving Credit Facility, dated 11 June 2014, (the "Original Acquisition Facility") has been agreed and that it has acquired six additional solar photovoltaic ("PV") plants with an energy capacity totaling 104.5 MegaWatts Peak ("MWp"). Including the three 5 MWp Solarcentury projects already announced on 23 December, 2015, the total consideration is £149 million, including transaction costs, debt costs and working capital.
The Credit Facility, which increases the funds available from £50 million under the Original Acquisition Facility up to a total of £200 million, is being provided by RBS and Investec Bank plc. ("Investec"). The acquisitions have been funded using the Credit Facility.
A portfolio of four operational solar PV assets totaling 94.5 MegaWatts Peak ("MWp") (the "Primrose Portfolio") has been acquired from Primrose Solar Management Limited. The projects in the Primrose Portfolio are located in Hampshire (48 MWp), Kent (17 MWp and 18 MWp) and Sussex (11.5 MWp) and have been constructed by two different contractors: Solarcentury and ib vogt. All have been accredited for 1.4 Renewable Obligation Certificates ("ROCs"). The Primrose Portfolio, which makes up approximately 25% of the Company's portfolio, benefits from attractively priced power purchase agreements with fixed offtake prices until early 2018.
A further two new build sub-5 MWp assets have been contracted comprising a 4.99 MWp plant in Norfolk and a 4.98 MWp plant in Gloucestershire. Both plants are expected to become operational before 31 March 2016 and to qualify under the 1.3 ROC regime. These projects, contracted with Solarcentury, follow the 15MWp of new build projects also contracted with Solarcentury in December 2015 and comprise part of a wider pipeline of projects under negotiation. Solarcentury will act as the EPC contractor for the plants, warranting their performance for an initial period. Solarcentury will also undertake the ongoing operation and maintenance of the plants under separate agreements.
Each of the six acquisitions is part of the prospective pipeline of 258 MWp referred to in the Company's prospectus published on 26 October 2015. Completion of the purchases brings the number of acquisitions made by the Company to 68 with an energy capacity in excess of 383 MWp. The acquisitions have been fully funded through utilisation of the Credit Facility, which is now drawn for a total of approximately £139 million, with total group borrowing of £153.3 million.
The Company can confirm that it intends to meet or exceed its target dividend of 7.07 pence per ordinary share in respect of the current financial year, which ends on 30 June 2016, with the intention of this rising annually with RPI thereafter. The total dividends in the previous financial year were 7.25 pence per share. On 26 October 2015, the Company declared its first interim dividend for the current financial period of 3.25 pence per ordinary share, which was paid on 15 December 2015.
Comment
John Rennocks, Chairman of the Company, stated, "This facility extension, together with the addition of a further 104.5MWp of operational or under-construction plants, puts the company in a very strong position to deliver another good year of results. As we approach the peak spring and summer seasons, we will continue to selectively invest in further plants by utilising the remainder of the facility."
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
Tom Karim
CNC - Public Relations
Tel: +44(0)20 3219 8820 / +44(0)7923 293 399
Note to editors
About Bluefield Solar Income Fund Limited (BSIF)
BSIF is a Guernsey-registered investment company focusing on large scale agricultural, commercial and industrial solar energy assets. It had an initial public offering of shares on the main market of the London Stock Exchange in July 2013. It has, currently, over 309 million shares in issue.
BSIF seeks to provide shareholders with an attractive return, principally in the form of quarterly 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 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 £1.6 billion of solar PV funds and/or transactions in both the UK and Europe since 2008, including over £500m in the UK since December 2011.
Bluefield has led the acquisitions, and currently advises on over 70 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 BSIF in June 2013.
