Bluefield Solar Income Fund is to issue new ordinary shares to raise up to £50m to help fund a pipeline of potential assets totalling 68MW ahead of the end of the 1.2 Renewable Obligation Scheme on 31 March 2017.
The fund said its directors have provisionally approved the pipeline, subject to due diligence and final documentation, which would have a total value of approximately £67m.
It currently has £19m in a revolving credit facility to fund potential pipeline assets in the short to medium term.
The fund therefore intends to use the net proceeds of the share issue to prepay amounts outstanding under the revolving credit facility and to finance further acquisitions and due diligence costs.
The share issue price will be £1.01 per share and is expected to close at 12 noon UK time on Wednesday 19 October 2016, but may close earlier or later at the “absolute discretion” of the fund and the deal broker Numis Securities.
The shares are expected to be issued on 24 October.
Bluefied chairman John Rennocks said: “With the Renewables Obligation scheme closing at the end of March next year, we expect this will be the last opportunity to acquire assets with these attractive yield characteristics.
“We therefore are seeking to raise these additional funds to take advantage of this opportunity.”
Image: Morgue File
Bluefield targets £50m
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By EBS