First Co-Investment into Spanish 50MW Solar Plant
LEI: 213800ZPHCBDDSQH5447
6 January 2022
NextEnergy Solar Fund Limited
("NESF" or the "Company")
First Co-Investment into Spanish 50MW Solar Plant under Construction
NextEnergy Solar Fund, the specialist solar power renewable energy investment company, is pleased to announce that it has signed its first co-investment transaction for a 25% stake in a Spanish 50MW utility scale solar project currently under construction in Cádiz, Spain ("Agenor"). Energisation of the project is expected to take place in the first half of 2022.
In June 2021, the Company made a commitment of US$50m to NextPower III ESG ("NPIII ESG"), a private ESG solar fund focused on utility scale solar assets in OECD markets to provide an opportunity to efficiently access an established portfolio of operational and in-construction international solar assets. This commitment also unlocked attractive co-investment opportunities on a direct investment basis alongside NPIII ESG and other investors in the fund, on a no-fee, no carry basis.
This investment marks the Company's first co-investment transaction sourced through its commitment into NPIII ESG. The Company's 25% stake in Agenor benefits from attractive terms and represents a total investment of €10.6m. The co-investment will be funded using headroom from available revolving credit facilities with the remaining 75% stake in Agenor being funded directly by NPIII ESG and another investor in the fund.
Once energised later in the first half of 2022, Agenor will benefit from a Power Purchase Agreement ("PPA") for the sale of electricity with a high-credit counterparty for c.70% of contracted volumes for an initial five-year period.
This co-investment further strengthens the Company's portfolio, providing additional geographical and revenue diversification, whilst offering an attractive return profile with a high proportion of contracted revenues locked in via the PPA. The Company continues to pursue a strong pipeline of international growth opportunities on a direct and co-investment basis, as well as its pipeline of electricity storage assets in the UK.
Kevin Lyon, Chairman of NextEnergy Solar Fund commented:
"We expect 2022 to be a very exciting year of growth for NESF. Through NESF's commitment into NPIII ESG, we were able to harness and benefit from NextEnergy Capital's international experience and expertise in the Spanish solar PV market. Co-investment opportunities can offer a unique, return-enhancing portfolio benefit and Agenor marks NESF's first co-investment with NPIII ESG and its first international investment outside of Italy. This is a very attractive co-investment opportunity for NESF whilst further diversifying the growing NESF portfolio."
Michael Bonte-Friedheim, Group CEO of NextEnergy Capital said:
"We are pleased to announce NESF's first direct international co-investment deal with NPIII ESG. Spain is an attractive market for solar infrastructure with one of the highest irradiation areas in Europe and is a natural step for NESF as part of its international expansion programme. We continue to pursue a strong pipeline and are expecting to announce further co-investments with NPIII ESG in due course."
For further information:
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NextEnergy Capital Group |
020 3746 0700 |
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Michael Bonte-Friedheim |
ir@nextenergysolarfund.com |
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Aldo Beolchini |
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Ross Grier |
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Peter Hamid (Investor Relations) |
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RBC Capital Markets |
020 7653 4000 |
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Matthew Coakes |
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Elizabeth Evans |
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Kathryn Deegan |
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Cenkos Securities |
020 7397 8900 |
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James King |
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William Talkington |
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Camarco |
020 3781 8334 |
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Owen Roberts |
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Eddie Livingstone-Learmonth |
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Apex Fund and Corporate Services (Guernsey) Limited |
0203 5303 668 |
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Nick Robilliard |
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Notes to Editors1:
About NextEnergy Solar Fund
NESF is a specialist solar power renewable energy investment company listed on the premium segment of the London Stock Exchange that invests in operating utility-scale solar power plants. The Company may invest up to 30% of its gross asset value in non-UK OECD countries, 15% in solar-focused private equity structures, and 10% in energy storage.
NESF currently has a diversified portfolio comprising 99 operating solar assets (primarily on agricultural, industrial, and commercial sites), and a $50m commitment into NextPower III (a private ESG solar infrastructure fund providing exposure to operating and in-development international solar assets).
The NESF portfolio has a combined installed power capacity of 895MW (including NextPower III MW on an equivalent look-through basis).
As at 30 September 2021, the Company had a gross asset value of £1,087 million, being the aggregate of the net asset value of the ordinary shares, the fair value of the preference shares and the amount of NESF Group debt outstanding, and a net asset value of £607million.
NESF's investment objective is to provide ordinary shareholders with attractive risk-adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of primarily UK-based solar energy infrastructure assets. The majority of long-term cash flows from its investments are inflation-linked.
For further information on NESF please visit nextenergysolarfund.com
Commitment to ESG
NESF is committed to ESG principles and responsible investment which make a meaningful contribution to reducing CO2 emissions through the generation of clean solar power. NESF will only select investments that meet the requirements of NEC Group's Sustainable Investment Policy. Based on this policy, NESF benefits from NEC's rigorous ESG due diligence on each investment. NESF is committed to reporting on its ESG performance in accordance with the UN Sustainable Development Goals framework and the EU Sustainable Finance Disclosure Regulation.
NESF has been awarded the London Stock Exchange's Green Economy Mark and has been designated a Guernsey Green Fund by the Guernsey Financial Services Commission.
NESF's sustainability-related disclosures in the financial services sector in accordance with Regulation (EU) 2019/2088 can be accessed on the ESG section of both the NESF website (nextenergysolarfund.com/esg/) & NEC Group website (nextenergycapital.com/sustainability/transparency-and-reporting/).
About NextEnergy Capital Group ("NEC Group")
NESF is managed by the NextEnergy Capital Group, a specialist solar investment manager, which has a strong track record in sourcing, acquiring, and managing operating solar assets. NEC Group is a leading player in the global solar investment sector and has over 200 team members with offices in UK, Italy, India, and the USA and assets under management of over $3.2bn across three institutional funds.
NextEnergy Capital Group donates at least 5% of its net annual profits to NextEnergy Foundation. NextEnergy Foundation is an international charity that was founded in 2016. Its mission is to participate proactively in the global effort to reduce carbon emissions, provide clean power sources in regions where they are not yet available, and contribute to poverty alleviation.
For further information on NEC Group please visit nextenergycapital.com
For further information on NextEnergy Foundation visit nextenergyfoundation.org
About WiseEnergy
WiseEnergy is NEC Group's specialist operating asset management division. NESF is differentiated by its access to WiseEnergy, which has provided operating asset management, monitoring, technical due diligence, and other services to over 1,300 utility-scale solar power plants with an installed capacity in excess of 2.2GW.
For further information on Wise Energy please visit wise-energy.com
[1] Note: All financial data is unaudited as at 30 September 2021, being the latest date in respect of which NESF has published financial information
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