Foresight Slr Fnd Ld Foresight Solar Fund Limited : Acquisition
October 12 2017 - 2:00AM
UK Regulatory
TIDMFSFL
12 October 2017
Acquisition
Foresight Solar Fund Limited ("the Company") is pleased to announce that
it has entered into binding contracts with Canadian Solar Inc.
("Canadian Solar") (NASDAQ: CSIQ), to acquire three construction stage
assets in Queensland, Australia, representing 117MW of peak capacity
once installed. The assets are Longreach Solar Farm (17 MW), Oakey 1
Solar Farm (30 MW) and Oakey 2 Solar Farm (70 MW) with the Company
acquiring 49% interests in each of Longreach and Oakey 1, and a 100%
interest in Oakey 2. The Company's equity investment in terms of the
interests acquired in these assets will amount to a total of c.A$64m
including expected construction costs.
Longreach and Oakey 1 have entered into 20-year fixed-price offtake
agreements with the Queensland Government for the sale of 100% of the
electricity generated and the Large-Scale Generation Certificates
("LGCs") and are expected to connect to the grid in March 2018 and
September 2018, respectively. Oakey 2 is expected to connect to the grid
in October 2018 with the offtake agreement to be agreed at a later
stage. The Company, in line with its low risk strategy, will not take
development risk for the projects.
This acquisition which follows the announcement of the Company's first
Australian investment on 28 September 2017, will increase the Company's
portfolio to 23 assets with a peak capacity of 622 MW, of which 147 MW
are still under construction.
Both Longreach and Oakey 1 benefit from grants from the Australian
Renewable Energy Agency ("ARENA"), as well as senior debt from the Clean
Energy Finance Corporation ("CEFC") and Bank of Tokyo-Mitsubishi UFJ.
The acquisitions are subject to certain conditions being met. The
acquisitions will be funded through the existing revolving credit
facility provided by Santander Global Corporate Banking.
Commenting on the acquisition, Alex Ohlsson, Chairman of the Company,
said: "The Board and I are delighted to announce the Company's second
significant solar acquisition overseas. This represents the continuing
development of the Company's international growth strategy in
Australia's solar sector. The transaction is further evidence of the
success the Investment Manager has had leveraging the extensive solar
experience and track record of Foresight's global Infrastructure team."
For further information, please contact:
Foresight Group
Romy Abrahams RAbrahams@ForesightGroup.eu +44
(0)20 3763 6956
Stifel Nicolaus Europe Limited, +44 (0)20 7710 7600
Mark Bloomfield
Neil Winward
Tunga Chigovanyika
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Foresight Solar Fund Limited via Globenewswire
(END) Dow Jones Newswires
October 12, 2017 02:00 ET (06:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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