Bluefield Bids For Next Large UK Project

Bluefield Solar Income Fund has announced that it has entered into binding contracts to acquire its fourth UK large-scale solar plant. The plant, located in Oxfordshire, will be acquired for a total investment consideration of £17 million, taking the Fund's total commitments to date to £55.3m. In total, the Fund has invested into solar plants with a capacity of 48 MegaWatt Peak ("MWp"). 41MWp are expected to benefit from 1.6 Renewable Obligation Certificates ("ROC"s), at an investment value of £1.12m per MWp, with the balance invested into a 2 ROC project.

The agricultural site will be one of the largest in the region. The plant is expected to commence electricity generation in quarter 1 2014 and qualify under the 1.6 ROC support banding. It has been developed, and is being constructed, by Solarcentury, one of the leading specialist UK solar contractors. It is the second major acquisition made by the Fund from Solarcentury.

Following the sale of the project, under the terms of the contract Solarcentury will warrant the performance of the plant for an initial period and will undertake the ongoing operation and maintenance of the plant under a separate agreement.

The Fund can confirm that, based on the existing committed projects and the terms agreed on this portfolio, it remains on course to deliver against its target dividend of 4 pence per ordinary share in relation to the first financial year ending 30 June 2014, and 7 pence per ordinary share in respect of the Company's second financial year, with the intention of this rising annually with RPI thereafter.

Bluefield Partners LLP, the Fund's Investment Adviser, will seek to maximise the return by active management strategies across the invested portfolio. The Fund is insulated from development risk by the contractors taking full responsibility for the construction and delivery of the plants. The Fund takes over assets once grid-connected and operational, and three of the four plants invested to date are either operational or guaranteed by the contractor to be grid-connected by December 2013.

Bluefield has agreed terms on a further three large scale sites that will take the Fund to over 75% committed. Combined with the four acquisitions already announced by the Fund, the new assets are expected to take the Fund's total commitments to c. £100m, with a total energy capacity of c. 83 MWp.