Bluefield Pick Up Two New Solar Parks In England

Bluefield Solar Income Fund has announced that it has entered into binding contracts to acquire two large-scale solar plants to be constructed in south west England. The acquisitions are the eleventh and twelfth made by the Company in the past twelve months. The two assets comprise an 8.5 MegaWatts Peak plant in Devon and a 6MWp plant in Somerset. They are being acquired for a total consideration of £15 million including transaction costs, debt costs and working capital. They are expected to qualify under the 1.4 Renewable Obligation Certificate ("ROC") regime.

The contracts have been signed with Juwi AG, the German renewable energy contractor. Its UK subsidiary, Juwi Renewable Energies, will build the plant. It will also undertake the ongoing operation and maintenance of the plant under a separate agreement. The Company has agreed strong contractual protections during the construction phase and post commissioning.

Since its IPO in July 2013, the Company has invested into twelve, wholly owned, solar plants with a combined energy capacity of c. 143 MWp. These two new acquisitions, along with the acquisition of the Hertfordshire based plant announced on 18 June, 2014, are using part of the £50 million revolving credit facility provided by the Royal Bank of Scotland. The remaining nine assets in the portfolio were acquired using the IPO proceeds and subsequent placement; they are now grid connected and operational. As expected, Betingau in Glamorgan was grid connected under the 1.6 ROC banding and Sheppey, in Kent, under the 1.4 ROC banding.

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.