Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Bluefield Solar Income Fund Ltd on Thursday confirmed the purchase of a UK solar energy portfolio, alongside GLIL Infrastructure, following UK national security act approval.
Bluefield is a Guernsey-based income fund, which focuses on UK-based renewable energy assets.
In December, the company signed a strategic partnership with GlIL, a group of UK pension funds investing in core UK infrastructure, to acquire a 247-megawatt UK-based solar portfolio from Lightsource bp. Bluefield said that it would invest £20 million worth of equity into Lightsource, alongside £200 million provided by GLIL. However, given their combined portfolio generation capacity of over 1 gigawatt, the pair required UK national security approval before the solar-energy assets could be purchased.
On Thursday, following approval from the National Security and Investments Act 2021, the company announced the completion of the investment.
Bluefield said that the portfolio, diversified across southern and central England, comprises 58 operating sights with a projected proportion of fixed and regulated revenues of around 80% through 2023 to 2035. The purchase will raise the Bluefield portfolio’s regulated revenue, the company said, while also increasing its proportion of feed-in tariffs income.
The company said that it continues to progress the second phase of the strategic partnership, which involves the acquisition by GLIL of a 50% stake in 100MW of the Bluefield portfolio. While not providing precise details, the company said that the acquisition price will be proportionate to its current valuation. Bluefield’s current market cap stands at £688.5 million. The proceeds of the sale will provide the company with additional liquidity, and the ability to further pay down its revolving credit facility.
Phase three of the partnership involves a capital commitment by the pair in a selection of Bluefield’s development pipeline assets. The company said that identified assets are expected to be grid-connected over the next 3 years.
The company has also paid a £10 million portion of its revolving credit facility. Following the portfolio acquisition and this repayment, the company’s revolving credit balance stands at £167 million, with long-term amortising debt of £430 million. Bluefield and its subsidiaries currently have total outstanding debt of £597 million.
Shares in Bluefield were up 0.2% at 112.86 pence each in London on Thursday morning.
Copyright 2024 Alliance News Ltd. All Rights Reserved.