Acquisition of 70 MWp UK-based solar PV plant

11 January 2021

Bluefield Solar Income Fund Limited

('Bluefield Solar' or the 'Company')

Acquisition of 70 MWp UK-based solar PV plant

Bluefield Solar (LON: BSIF), a UK-focused income fund that invests primarily in solar assets, is pleased to announce that the Company has acquired Bradenstoke Solar Park Limited, an operational 70 megawatt peak ('MWp') ground mounted solar photovoltaic ('PV') plant. Unless otherwise noted herein, the information provided in this announcement and any asset valuations underlying such information is unaudited.

On 8 January 2021, the Company completed the acquisition of the plant for a total cash consideration of £89.0 million.  The Company will receive the economic benefit of all cash flows from the plant from 1 April 2020.

The plant, which covers a 213 acre site and is located on a former RAF airbase in Wiltshire, has been operational since March 2015 and is accredited under the Renewable Obligation Certificate ('ROC') regime with a tariff of 1.4 ROCs. 

The acquisition has been financed using the Company's revolving credit facility which, as well as being extended to September 2022 (with an option to extend to September 2023), has also been increased, through an accordion mechanism, to £100.0 million. The margin on the facility remains at LIBOR + 2.00%.   

Following the transaction, the Company's total outstanding debt has increased to £370.4 million and the total installed capacity of its portfolio has grown to 612 MWp, to date all of which comprises UK solar assets with high levels of government backed revenue streams paid in sterling. 

Using the Company's 30 September 2020 unaudited net asset value ('NAV') of £424.3 million as a reference and including the Company's over-subscribed equity raise of £45.0 million in November 2020, the leverage level of the Company is circa 44% of Gross Asset Value. 

An updated audited NAV, as of 31 December 2020, will be published when the Company releases its Interim accounts on Tuesday, 2 March 2021.

John Rennocks, Chairman of Bluefield Solar, said: "Following the high quality 64 MWp portfolio of ROC accredited UK solar assets that we acquired in August 2020, the purchase of Bradenstoke is further evidence of our ability to source attractive assets with high levels of regulated revenues. This acquisition is immediately accretive to earnings and further underpins our projected results and dividends for the current financial year ending in June 2021 and beyond.  The Board and our Investment Adviser continue to carefully assess a strong pipeline of opportunities across both primary and secondary markets."

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Notes to Editors

About Bluefield Solar

Bluefield Solar is a UK income fund focused, primarily, on acquiring and managing UK-based solar projects to generate renewable energy for periods of typically 25 years or longer.  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 onshore wind, hydro and storage technologies.  Its primary objective is to deliver to its shareholders stable, long term sterling income via quarterly dividends.  The majority of the Group's revenue streams are regulated and non-correlated to the UK energy market.  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 612 MWp.

Further information can be viewed at www.bluefieldsif.com

About Bluefield Partners

Bluefield Partners 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 £2.0 billion renewable funds and/or transactions in both the UK and Europe since 2008, including £1.3 billion in the UK since December 2011.

Bluefield Partners has led the acquisitions of, and currently advises on, over 100 UK based solar PV assets that are agriculturally, commercially or industrially situated.  Based in its London office, it is supported by a dedicated and highly experienced team of investment, legal and portfolio executives.  Bluefield Partners was appointed Investment Adviser to Bluefield Solar in June 2013.