Foresight Expands UK Portfolio
Foresight Solar Fund has announced that it has entered into a binding contract to acquire its ninth large-scale UK solar power plant, the 37.3MW Bournemouth plant. The plant is expected to be connected later this year and will be eligible for the 1.4 ROC rate. Following the acquisition of Bournemouth, the Company will own and manage three of the UK's largest solar power plants.
The acquisition is subject to certain conditions being met by the developer of the plants, including the plant being built to the required standard, its successful connection to the grid and Ofgem ROC accreditation. The Company, in line with its low risk strategy, will not take construction risk for the project.
In total the Company now manages an operational portfolio of 100MW of UK solar assets and has binding contracts in place to acquire a further 85MW.
The Company announced earlier this week that it had reached financial close on a £100m debt acquisition facility to fund additional operational solar power plant acquisitions. The facility will be provided by RBC, RBS and Santander and it is expected that the facility will be repaid through utilisation of excess dividend cover, further equity issuance and/or refinancing with a long-term debt facility.
The Company continues to confirm its intent to deliver a target dividend of 6p per ordinary share in respect of its first financial year, rising annually with RPI thereafter, and enabling the Company to support its strategy to sustain the NAV, offering the potential for further capital growth.
