TIDMNESF
RNS Number : 5864Q
NextEnergy Solar Fund Limited
01 March 2021
LEI: 213800ZPHCBDDSQH5447
1 March 2021
NextEnergy Solar Fund Limited
("NESF" or the "Company")
Acquisition of 100MWp UK Camden solar PV portfolio
-- The Grange - 50MWp
-- South Lowfield - 50MWp
NextEnergy Solar Fund, the FTSE 250 solar power renewable energy
investment company, is pleased to announce the acquisition of the
UK based Camden solar photovoltaic ("PV") portfolio comprising two
projects totalling 100MWp for a total consideration of c.GBP64.3
million.
The portfolio has a 15-year power purchase agreement ("PPA") in
place covering c.75% of the electricity to be generated over the
life of the PPA. The PPA counterparty is AB InBev, the world's
largest brewer(1) . One project is already energised and the second
is expected to be energised during the second quarter of 2021.
Once commissioned, the portfolio will represent an increase of
c.13% in NESF's installed capacity The acquisition has been
financed using NESF's current revolving credit facilities.
Key acquisition highlights:
-- The portfolio is made up of two assets:
1. The Grange: 50MWp on a c.214-acre site, located in Yorkshire, UK
2. South Lowfield: 50MWp on a c.200-acre site, located in Nottinghamshire, UK
-- 15-year PPA in place for c.75% of the electricity
generation
-- PPA with AB InBev, a high-quality counterparty
-- The portfolio is expected to be commissioned in the first
half of 2021
-- The portfolio will produce enough clean energy to power the
equivalent of c.29,000 UK households per year
Key NESF portfolio highlights:
-- The NESF portfolio has immediately increased to 92 operating
solar assets, with a combined installed power capacity of c.813MWp
(from c.763MWp)
-- The NESF portfolio will increase to 93 operating solar
assets, once South Lowfield is energised during the second quarter
of 2021, increasing the combined installed power capacity to
c.863MWp
Long-term corporate PPA
The Camden portfolio has a 15-year PPA in place with AB InBev.
This positions NESF as one of the market leaders in the nascent and
growing UK PPA market with a high-quality and high-profile
counterparty. The PPA allows NESF to increase its proportion of
revenues secured by long-term contracts.
Investment strategy
The Camden portfolio fits well with NESF's investment strategy
of providing shareholders with an attractive risk-adjusted return
from a diversified portfolio of primarily UK-based assets by adding
two further ground-based and utility-scale PV assets. These two
assets should to generate stable cash flows over their 40-year
lifespan. The Camden portfolio has little construction risk
attached to it as The Grange is already energised and South
Lowfield is expected to be energised shortly.
NESF sees opportunities to generate incremental value from these
two assets through NextEnergy Capital Group's active asset
management experience.
Portfolio benefits
The NESF portfolio will benefit from additional diversification
benefits from the Camden portfolio in terms of:
-- High-quality components , by using the latest high-quality
modules and inverter suppliers, NESF improves the efficiency and
reliability of its technical component portfolio
-- Latest module technology , with the installation of the
newest module technology, NESF is able to generate more electricity
through the use of bifacial modules (double-sided solar panels) and
benefit from the latest independent distribution network operator
("IDNO") solutions
Cashflow
NESF will receive the economic benefit from The Grange cashflows
immediately. South Lowfield, the second asset, will benefit NESF as
soon as it is energised during the second quarter of 2021.
Financing
The Camden portfolio has been financed using NESF's revolving
credit facilities. Following the transaction, the Company's total
outstanding debt is GBP247.4 million.
Future pipeline
NESF continues to advance a pipeline of UK and international
solar assets to achieve its growth and expansion objectives.
Kevin Lyon, Chairman of NextEnergy Solar Fund commented:
"The Camden portfolio is an excellent fit for NESF and the PPA
agreement with AB InBev provides long-term, reliable cashflows to
the fund. The board is excited to partner with such a high-profile
global company, helping them achieve their renewable energy
targets."
Ross Grier, UK Managing Director of NextEnergy Capital Group
commented:
"We are very pleased to have secured the Camden portfolio. The
15-year corporate PPA is a real highlight given the average period
for corporate PPAs that we see in the market is around 7-10 years.
NESF continues to grow and we are pleased that we are increasing
the total installed capacity of our portfolio to c.863MWp. NESF
will continue to look to grow its solar portfolio further,
domestically and internationally, through our measured investment
process, with shareholder value at the heart of our decisions."
Footnotes:
(1) 2019 AB InBev Annual Report
-End-
For further information:
NextEnergy Capital Group 020 3746 0700
Michael Bonte-Friedheim ir@nextenergysolarfund.com
Aldo Beolchini
Ross Grier
Peter Hamid (Investor Relations)
Cenkos Securities 020 7397 8900
James King
William Talkington
Shore Capital 020 7408 4090
Anita Ghanekar
Sarah Mather
Fiona Conroy
Camarco 020 3781 8334
Owen Roberts
Eddie Livingstone-Learmonth
Apex Fund and Corporate Services (Guernsey)
Limited 01481 735 827
Nick Robilliard
Notes to Editors(1) :
About NextEnergy Solar Fund
A constituent of the FTSE 250 Index, NextEnergy Solar Fund is a
renewable energy infrastructure investment company that currently
invests in operating solar power plants in the UK and Italy. The
Company may invest up to 30% of its gross asset value in non-UK
OECD countries, 15% in private equity structures, and 10% in
standalone energy storage.
NESF has a diversified portfolio comprising 92 operating solar
assets, primarily on agricultural, industrial, and commercial
sites, with a combined installed power capacity of c.813MW.
As at 31 December 2020, the Company had gross assets of GBP1,001
million, of which 88% was invested in the UK, and net assets of
GBP591 million. The majority of long-term cash flows from its
investments are inflation-linked.
NESF's investment objective is to provide ordinary shareholders
with attractive risk-adjusted returns, principally in the form of
regular dividends, by investing in a diversified portfolio of
primarily UK-based solar energy infrastructure assets. The dividend
is payable quarterly, and the Company has announced a dividend
target for the year ending 31 March 2021 of 7.05p per ordinary
share.
Committed to ESG
NESF is committed to ESG principles and responsible investment
which make a meaningful contribution to reducing CO2 emissions
through the generation of clean solar power. NESF will only select
investments that meet the requirements of NEC Group's Sustainable
Investment Policy. Based on this policy, NESF benefits from NEC's
rigorous ESG due diligence on each investment. NESF is committed to
reporting on its ESG performance in accordance with the UN
Sustainable Development Goals framework and the EU Sustainable
Finance Disclosure Regulation.
NESF has been awarded the London Stock Exchange's Green Economy
Mark and has been designated a Guernsey Green Fund by the Guernsey
Financial Services Commission.
For further information on NESF please visit
nextenergysolarfund.com
About NextEnergy Capital Group ("NEC Group")
NESF is managed by the NextEnergy Capital Group, a specialist
solar investment manager, which has a strong track record in
sourcing, acquiring, and managing operating solar assets. NEC Group
is a leading player in the global solar investment sector and has
over 190 team members with offices in UK, Italy, India, and the USA
and assets under management of over $2.3bn across three
institutional funds.
NextEnergy Capital Group donates 5% of its net annual profits to
NextEnergy Foundation. NextEnergy Foundation is an international
charity that was founded in 2016. Its mission is to participate
proactively in the global effort to reduce carbon emissions,
provide clean power sources in regions where they are not yet
available, and contribute to poverty alleviation.
For further information on NEC Group please visit
nextenergycapital.com
For further information on NextEnergy Foundation visit
nextenergyfoundation.org
About WiseEnergy
WiseEnergy is NEC Group's specialist operating asset management
division. NESF is differentiated by its access to WiseEnergy, which
has provided operating asset management, monitoring, technical due
diligence, and other services to over 1,500 utility-scale solar
power plants with an installed capacity in excess of 2.3GW.
For further information on Wise Energy please visit
wise-energy.com
([1]) Note: All financial data is as at 31 December 2020, being
the latest date in respect of which NESF has published financial
information
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