Bluefield Complete Parks By April Deadline
Bluefield Solar Income Fund is pleased to announce that a further five plants targeted to be grid-connected by March 31, 2014 have successfully become operational by that date. The plants met the deadline to qualify under the 1.6 Renewable Obligation Certificate (ROC) regime and have been acquired for an average of £1.12 million per MegaWatt Peak (MWp). Including transaction costs and working capital, the price is £1.14 million per MWp. They have a combined energy capacity of some 69 MWp and bring the total connected capacity of the Company to 91 MWp.
The five plants are Goosewillow (17 MWp) and Hill Farm (15 MWp) in Oxfordshire, Hall Farm (11.5 MWp) in Norfolk, Saxley (6 MWp) in Hampshire and Pentylands (19 MWp) in Wiltshire. Hardingham (15 MWp) in Norfolk and North Beer (7 MWp) in Cornwall were grid-connected during 2013. North Beer has been operational and accruing revenues since March 2013.
Of the two remaining plants in the portfolio, the grid connection of Betingau (10.5 MWp) in Glamorgan, also due to become operational at the end of March, is expected to be announced shortly following sign off procedures. The final plant, Sheppey (10.5 MWp) in Kent, is on target for its contractually guaranteed connection date in April, 2014. All projects benefit from contractual protections guaranteeing revenue from a fixed date irrespective of their successful connection, and price adjustments to ensure returns are equalized irrespective of the final ROC regime accreditation.
The proceeds of the Initial Public Offering (IPO) raised in July, 2013 were fully committed with the Company's final investment in February. This investment required a further placement of £13m in order to complete the funding. The placement was oversubscribed. The Company can confirm that it expects 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.
John Rennocks, Chairman of the Company commented: "The announcement today is testament to the selection of the contractors made by Bluefield, our adviser, and to the quality of the contractors' work. The Company has fully deployed the IPO proceeds and delivered a portfolio of high quality operational plants at an average price per MWp that is considerably more attractive than its direct peer group. The board has confidence that the sector leading returns targeted of 7 pence, rising with RPI, will be achieved due to the attractive acquisition prices combined with the cautious nature of the underlying assumptions such as a zero real energy price inflation and low levels of leverage".
The Company expects to make further announcements shortly regarding Betingau and Sheppey and the provision of a debt facility.
