TIDMBSIF
RNS Number : 6946X
Bluefield Solar Income Fund Limited
22 December 2023
22 December 2023
Bluefield Solar Income Fund Limited
('Bluefield Solar' or the 'Company')
Strategic Partnership with GLIL Infrastructure ('GLIL')
Agreement set to enhance income diversification and facilitate
de-leveraging
-- Bluefield Solar to invest GBP20 million of equity, alongside
GBP200 million from GLIL, into a UK based solar portfolio and repay
GBP10 million of the Company's Revolving Credit Facility
('RCF').
-- Provisional agreement for GLIL to acquire a 50% stake in a
portfolio in excess of 100MW currently owned by Bluefield Solar, in
line with current valuation, in early 2024.
-- Strategic partnership agreement provisionally committing
Bluefield Solar and GLIL to funding a selection of the Company's
development pipeline.
Bluefield Solar (LON: BSIF), the London listed UK income fund
focused primarily on acquiring and managing solar energy assets, is
pleased to announce the signing of a Memorandum of Understanding
('MOU') with GLIL regarding the formation of a long-term strategic
partnership ('Strategic Partnership') which commits both parties to
investing together into UK focused solar assets, from development
through to operational plants. GLIL is a partnership of UK pension
funds, investing into core UK infrastructure, including Local
Pensions Partnership Investments, Greater Manchester Pension Fund,
Merseyside Pension Fund, West Yorkshire Pension Fund and Nest, and
has a GBP3 billion portfolio of infrastructure assets.
There are three distinct phases to the Strategic
Partnership:
In phase one, the Strategic Partnership has agreed the
acquisition of a 247MW portfolio of UK solar assets from
Lightsource bp (the 'Lightsource bp Portfolio'). The Lightsource bp
Portfolio is predominantly diversified across southern and central
England and comprises 58 operating sites: 184MW backed by Feed in
Tariff ('FiT') subsidies, 15MW by Renewable Obligation Certificates
('ROCs') and two subsidy free projects totalling 48MW. Through the
period 2023 to 2035 the proportion of fixed and regulated revenues
from the portfolio is projected to be approximately 80%. The
acquisition raises the level of regulated revenues in the Bluefield
Solar portfolio, whilst also increasing the proportion of FiT
income.
Bluefield Solar is investing GBP20 million, or 9% of the equity,
with GLIL investing the balance. The Company will fund the
acquisition using earnings which arose in the financial year ended
30 June 2023, after the payment of dividends, debt amortisation and
the Electricity Generator Levy ('EGL'). In addition, Bluefield
Solar will use a further GBP10 million of earnings to pay down a
portion of the Company's RCF. Total retained earnings before this
announcement were approximately GBP60 million. Following the
Lightsource bp Portfolio acquisition and the partial repayment of
the RCF, the Company's UK holding companies' RCF balance will stand
at GBP167 million, with long term amortising debt being GBP430
million. Overall, the Company's UK holding companies and its
subsidiaries have total outstanding debt of GBP597 million, with a
leverage level of circa 41% of Gross Asset Value (broadly unchanged
from 30 June 2023).
The acquisition is conditional on the joint venture between
Bluefield Solar and GLIL being an approved buyer under the National
Security and Investment Act 2021 as the parties have a combined
portfolio generation capacity of over 1GW. This is expected in
January 2024.
In phase two, GLIL has provisionally agreed to acquire a 50%
stake in a portfolio of more than 100MW of operational UK solar
assets currently owned by the Company ('Bluefield Portfolio'). The
provisional acquisition price is in line with the Company's current
valuation. The Strategic Partnership intends to reach financial
close in the first half of 2024. The sale of a stake in the
Bluefield Portfolio, as described, will provide Bluefield Solar
with additional liquidity, the proceeds of which provide the
opportunity to continue to pay down the drawn RCF.
In phase three, Bluefield Solar and GLIL intend via the
Strategic Partnership to commit capital in a selection of the
Company's development pipeline, assuming market conditions are
supportive. The identified development assets are expected to be
grid connected over the next two to three years.
The Board of Bluefield Solar reiterates its guidance of a raised
full year dividend of not less than 8.80pps for the period ending
30 June 2024 (increased from 8.60pps paid for the period ended 30
June 2023).
John Scott, Chair of Bluefield Solar, said : "Current capital
market conditions make it difficult for us to raise new capital
using the instruments which have served the Company and its
shareholders well through the past ten years. In response, the
Bluefield Solar board has been evaluating how best to continue our
development programme, while maximising value for our shareholders
over the long term. The strategic partnership with GLIL is an
exciting and significant development for the Company; it creates
the opportunity for both parties to invest in the sizeable
renewable energy pipeline which our Investment Adviser has
identified, while responding to shareholder feedback in reducing
our short-term debt position. The world is crying out for more
solar power and COP28 has called for a tripling of capacity by
2030. We see tremendous potential in this partnership as a means to
help Bluefield Solar play its part in achieving this goal."
James Armstrong, Managing Partner, Bluefield Partners,
Investment Adviser to Bluefield Solar, said: "We have been
listening to feedback from our shareholders and the strategic
partnership with GLIL enables us to deliver on a number of key
areas simultaneously: to continue to keep investment momentum in a
difficult time for public market infrastructure funds and
judiciously diversify the portfolios revenues; to provide an
additional external validation of asset values; to create
additional liquidity and lower the Company's overall debt burden;
and to partner with a like-minded investment group. As a long-term
investor into solar assets, GLIL is the ideal partner for a company
like Bluefield Solar, sharing our multi-decade view of asset
management. We have always focused on the long-term interests of
the shareholders, and we believe this strategic partnership can
deliver short-term solutions and long-term benefits to Bluefield
Solar investors."
Chris Rule, Member of the GLIL Infrastructure Executive
Committee , said: "Entering into a long-term strategic partnership
with one of the most respected and leading asset owners in this
sector is very exciting for GLIL. Being able to acquire and develop
further renewable energy assets is very important for our Members,
all of whom are deeply committed to investing in the energy
transition and working towards a sustainable net zero economy."
- Ends -
For further information:
Tel: +44 (0) 20 7078 0020
Bluefield Partners LLP (Company Investment Adviser) www.bluefieldllp.com
James Armstrong / Neil Wood / Giovanni Terranova
Deutsche Numis (Company Broker) Tel: +44 (0) 20 7260 1000
Tod Davis / David Benda / Matt Goss www.dbnumis.com
Ocorian Tel: +44 (0) 1481 742 742
(Company Secretary & Administrator) www.ocorian.com
Chezi Hanford
Media enquiries:
Buchanan (PR Adviser) Tel: +44 (0) 20 7466 5000
Henry Harrison-Topham / Henry Wilson www.buchanan.uk.com
BSIF@buchanan.uk.com
GLIL Infrastructure
Citypress www.citypress.co.uk
Justin Moll glil@citypress.co.uk
About Bluefield Solar
Bluefield Solar is a London listed income fund focused primarily
on acquiring and managing solar energy assets. 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
other technologies, such as wind and storage. Bluefield Solar owns
and operates a UK portfolio of 812MW, comprising 754MW of solar and
58MW of onshore wind.
Further information can be viewed at www.bluefieldsif.com
About Bluefield Partners
Bluefield Partners LLP 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 GBP6.5 billion
renewable funds and/or transactions in both the UK and Europe,
including over GBP1 billion in the UK since December 2011.
About GLIL Infrastructure
GLIL is a partnership of UK pension funds which invests in
Britain's future - creating jobs, supporting communities and
helping to power the economy. It is a proven investor, with a fund
specially designed to help pension fund members tap into the
stable, inflation-linked returns that infrastructure investment
offers. GLIL manages GBP3.6 billion of committed capital, with more
than GBP3.0 billion deployed into a growing portfolio of
infrastructure assets spanning renewable energy, energy storage,
utilities ports, trains, hospitals and schools. It invests on
behalf of Local Government Pension Scheme DB funds and pools
including Local Pensions Partnership Investments, Greater
Manchester Pension Fund, Merseyside Pension Fund, West Yorkshire
Pension Fund, as well as Nest, the government-established Defined
Contribution workplace pension provider. For more information on
GLIL, including its history, executive committee and investment
portfolio, please visit www.glil.co.uk .
About Lightsource bp
Lightsource bp is a global leader in the development and
management of solar energy projects. Most recently, bp has
announced the intention to fully acquire Lightsource bp. It is
currently operated as a 50:50 joint venture with bp. Our purpose is
to deliver affordable and sustainable solar power for businesses
and communities around the world. For more information on
Lightsource bp, please visit www.lightsourcebp.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDGZMZZLMFGFZM
(END) Dow Jones Newswires
December 22, 2023 02:00 ET (07:00 GMT)
Bluefield Solar Income (LSE:BSIF)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bluefield Solar Income (LSE:BSIF)
Historical Stock Chart
From Apr 2023 to Apr 2024
