22 July
2024
Bluefield
Solar Income Fund Limited
('Bluefield Solar' or the 'Company')
Execution of Phase Two of
Strategic Partnership with GLIL Infrastructure
('GLIL')
Sale of 50% stake in 112MW
Operational assets
· GLIL to acquire a
50% stake in a 112MW PV portfolio of 1.4 and 1.3 ROC assets, (the
"Partnership Portfolio") as
part of c£70 million strategic partnership investment, in line with
the Company's March 2024 NAV of £817m.
·
Proceeds from the sale will be used to repay a
portion of the Company's RCF, as well as to provide funding for
construction of approximately 17MW of development assets as the
initial commencement of Phase three of the Strategic
Partnership
Bluefield Solar (LON: BSIF), the
London listed UK income fund focused primarily on acquiring and
managing solar energy assets, is pleased to report
the signing of Phase two of
its long-term strategic partnership ('Strategic Partnership') with GLIL which is the
agreement to sell a 50% stake in a 112MW portfolio of UK solar
assets currently owned by Bluefield Solar.
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 £3 billion portfolio of infrastructure assets.
The Bluefield Solar portfolio of
112MW is diversified across southern and central England and
comprises 9 operating sites all backed by Renewable Obligation
Certificates ('ROCs'); 78MW
1.4 ROC accreditation and 34MW 1.3 ROC accreditation.
Following amalgamation with the
acquisition of the LightsourceBp Portfolio, in
which Bluefield Solar acquired a 9% equity interest in tandem with
GLIL under Phase One of the Strategic Partnership in December 2023,
BSIF's equity stake across the combined portfolios will increase to
c.25%.
The acquisition is conditional on
Bluefield Solar and GLIL being approved buyers under the Planning
Act 2008 for Nationally Significant Infrastructure Projects, due to
Bluefield Solar's interest in over 1GW of generating assets.
Approval is expected in mid-August 2024.
The Company's RCF drawing currently
stands at £184 million, with long term amortising debt being £423
million. Overall, the Company has total outstanding debt of £607
million, with a leverage level of circa 43% (based on the March
2024 Net Asset Value).
As announced on 22 December 2023, in
Phase three, Bluefield
Solar and GLIL intend, via the Strategic Partnership, to commit
capital to a selection of the Company's development pipeline,
assuming market conditions are supportive. The identified c17MWp of
Auction Round 4 Contracts for Difference ("CfD") development assets are expected
to be grid connected within the next twelve months.
The Bluefield Solar board reiterates
its guidance in delivering its 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, Chairman of Bluefield
Solar, said:
"We are delighted to announce a landmark
transaction for the sector in the completion of the second phase of
the Company's strategic partnership with GLIL, providing a
significant source of capital for BSIF while validating the
Company's Net Asset Value through this endorsement from an
institutional investor of the highest calibre. The cash proceeds of
c£70 million will be used prudently to reduce the Company's
leverage while also enabling the Company to commit further capital
to BSIF's significant proprietary development pipeline. The new
projects in development provide an exciting opportunity for
significant value accretion for shareholders while also expanding
the UK's solar resources to help achieve our national climate
goals."
Julia Carter, Deputy Portfolio
Manager at GLIL Infrastructure, added:
""This acquisition represents the continuation of our strong
strategic relationship with the team at Bluefield Solar, as well as
our commitment on behalf of our members to helping drive the energy
transition. Not only do these assets make a welcome addition to our
growing green energy portfolio, but they maintain our strong track
record of backing core UK infrastructure projects. Along with our
members and Bluefield Solar, we recognise our role as custodians of
the future. We have a responsibility to ensure our investments help
decarbonise industries, but also support local communities through
regeneration projects and job creation and help drive the economy
forwards."
For further information:
Bluefield Solar Income Fund:
Bluefield Partners LLP
(Company Investment Adviser)
James Armstrong / Neil Wood / Giovanni
Terranova
|
Tel: +44
(0) 20 7078 0020
www.bluefieldllp.com
|
|
|
Deutsche Numis (Company Broker)
Tod Davis / David Benda / Matt Goss
|
Tel: +44
(0) 20 7260 1000
www.dbnumis.com
|
|
|
Ocorian
(Company Secretary &
Administrator) Chezi Hanford
|
Tel: +44
(0) 1481 742 742
www.ocorian.com
|
|
|
Media enquiries:
Burson
Buchanan (PR
Adviser)
Henry Harrison-Topham / Henry
Wilson
|
Tel: +44 (0) 20 7466 5000 www.bursonbuchanan.com
BSIF@buchanan.uk.com
|
Citypress (on behalf of GLIL Infrastructure)
Tel: +44 (0)131 516 5551
Jamie Williamson
GLIL@citypress.co.uk
Notes to Editors
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 834MW, comprising 776MW 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 £6.5 billion renewable funds and/or
transactions in both the UK and Europe, including over £1.6 billion
in the UK since December 2011.
Bluefield Partners LLP has led the
acquisitions of, and currently advises on, over 200 UK based solar
assets that are agriculturally, commercially or industrially
situated. Based in its London office, it is supported by a
dedicated and experienced team of investment, legal and portfolio
executives. Bluefield Partners LLP was appointed Investment Adviser to
Bluefield Solar in June 2013.
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 £4.1 billion of
committed capital, with more than £3 billion deployed into a
growing portfolio of infrastructure assets spanning renewable
energy, water and ports, trains, hospitals and schools. It invests
on behalf of pension funds and pools including Local Pensions
Partnership Investments, Greater Manchester Pension Fund,
Merseyside Pension Fund, West Yorkshire Pension Fund and Nest, the
government-established DC workplace pension provider. For more
information on GLIL, including its history, and investment
portfolio, please visit www.glil.co.uk.