Second International Co-Investment
LEI: 213800ZPHCBDDSQH5447
9 May 2022
NextEnergy Solar Fund Limited
("NESF" or the "Company")
Second International Co-Investment:
210MW Solar Plant Under Construction in Portugal
NextEnergy Solar Fund, the specialist solar power renewable energy investment company, is pleased to announce that it has signed its second international co-investment with NextPower III ESG ("NPIII ESG") for an investment of c.€22.5m, taking a 13% stake in a 210MW solar project currently under construction in Santarém, Portugal ("Santarém"). Energisation of the project is expected to take place in Q2 2023.
Once energised, Santarém is expected to benefit from a long-term power purchase agreement ("PPA") for the sale of electricity which is currently being negotiated with a robust creditworthy counterparty.
This co-investment is the second such transaction sourced alongside NESF's investment in NPIII ESG made in June 2021. NPIII ESG is a private USD $806 million ESG solar fund focused on utility scale solar assets in OECD markets, which provides NESF the opportunity to efficiently access an established portfolio of operational and in-construction international solar assets. Co-investments alongside NPIII ESG are undertaken by NESF on a no-fee, no carry basis.
The co-investment will be funded using headroom available within the Company's revolving credit facilities.
This co-investment further strengthens the Company's portfolio, providing additional geographical and revenue diversification. The Company continues to pursue a strong pipeline of domestic and international solar opportunities on a direct and co-investment basis, as well as standalone and co-located battery assets in the UK.
Kevin Lyon, Chairman of NextEnergy Solar Fund commented:
"NESF's second co-investment transaction, Santarém, is another testament to the growth progress the fund is making. NESF now has solar investments across the UK, Italy, Spain and Portugal, further adding to the diversification of the portfolio whilst growing NESF's global asset base. NESF continues to benefit from NextEnergy Capital's leading expertise and experience in the international solar market, particularly against the current backdrop of volatility and uncertainty. The board looks forward to keeping the market up to date on further co-investment opportunities and on progress on our pipeline over the course of the year, and further on."
Michael Bonte-Friedheim, Group CEO of NextEnergy Group said:
"Santarém marks another successful co-investment for NESF, demonstrating the benefits of being an investor in NextPower III ESG, with access to unique co-investment opportunities that only private sector funds can offer. Santarém broadens NESF's geographic reach into Portugal, a market where NextEnergy Capital, NESF's investment advisor, already has extensive on the ground experience. Portugal has one of the highest irradiation factors in Europe and is an attractive market for solar."
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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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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Ocorian Administration (Guernsey) Limited |
014 8174 2642 |
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Kevin Smith |
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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 utility-scale solar power plants and energy storage. 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 of the following:
Solar PV:
· 99 operating solar assets across the UK and Italy (primarily on agricultural, industrial, and commercial sites)
·A 50MW co-investment into a Spanish solar project alongside NextPower III ESG, currently under construction
· A 210MW co-investment into a Portuguese solar project alongside NextPower III ESG, currently under construction
· A subsidy-free UK solar project under construction (Whitecross 36MW)
· A ready-to-build subsidy-free UK solar project (Hatherden 50MW)
· A $50m commitment into NextPower III ESG (a private solar infrastructure fund providing exposure to operating and in-development international solar assets)
Energy Storage:
·A 50MW standalone battery storage project in Fife, Scotland, currently under construction (part of a 250MW joint venture with Eelpower)
· A 6MW co-located battery storage project at North Norfolk Solar Farm
The NESF portfolio has a combined installed power capacity of 865MW (excluding NextPower III MW on an equivalent look-through basis).
As at 31 December 2021, the Company had a gross asset value of £1,094 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 £615million.
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 solar energy and energy storage infrastructure assets. The majority of NESF's long-term cash flows are inflation-linked via UK government subsidies.
For further information on NESF please visit www.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 Group
NESF is managed by NextEnergy Capital, part of the NextEnergy Group. NextEnergy Group was founded in 2007 to become a leading market participant in the international solar sector. Since its inception, it has been active in the development, construction, and ownership of solar assets across multiple jurisdictions. NextEnergy Group operates via its three business units: NextEnergy Capital (Investment Management), WiseEnergy (Operating Asset Management) and Starlight (Asset Development).
NextEnergy Capital
NextEnergy Capital comprises the Group's investment management activities. To date, NEC has invested in over 325 individual solar plants for a capacity in excess of 2.3GW across it institutional funds.
www.nextenergycapital.com
· NextEnergy Solar Fund ("NESF") is a solar infrastructure investment company focused on the UK and other OECD countries, which is listed on the premium segment of the London Stock Exchange. It currently owns 865MW spread among 99 individual assets in the UK and Italy, comprising a gross asset value of £1,094m. NESF is one of the largest listed solar energy investment companies in the world.
· NextPower II ("NPII") a private fund made up of 105 individual operating solar power plants and an installed capacity of 149MW, focused on consolidating the substantial, highly fragmented Italian solar market. NPII was successfully divested in January 2022, a 2016 vintage vehicle that generated net IRRs to its investors in excess of 25%, versus a gross target of 10-12%.
· NextPower III ESG ("NPIII ESG") is a private fund exclusively focused on the international solar infrastructure sector, principally targeting projects in carefully selected OECD countries, including the US, Portugal, Spain, Chile, Poland and Italy. NPIII ESG is a fund that provides a positive social and environmental impact to the countries it has and will invest into. NPIII completed its fundraise with a total of $896m, including a SMA raised. The target of the fund was $750m.
· NextPower UK ESG ("NPUK ESG") is a private unlevered fund investing in greenfield subsidy-free solar projects, with PPA's, in the UK. NPUK ESG was launched in December 2021. The UK Infrastructure Bank is providing financing to the initial seed assets of the fund, and plans to invest up to £250m, half of the fund's total target fund size, on a match-funding basis.
WiseEnergy
WiseEnergy® is NextEnergy Capital Group's operating asset manager. WiseEnergy is a leading specialist operating asset manager in the solar sector. Since its founding, WiseEnergy has provided solar asset management, monitoring and technical due diligence services to over 1,300 utility-scale solar power plants with an installed capacity in excess of 2.2GW. WiseEnergy clients comprise leading banks and equity financiers in the energy and infrastructure sector.
Starlight
Starlight is NextEnergy Group's development company that is active in the development phase of solar projects. It has developed over 100 utility-scale projects internationally and continues to progress a large pipeline of c.2.5GW of both green and brownfield project developments across global geographies.
Notes:
1: All financial data is unaudited as at 31 December 2021, being the latest date in respect of which NESF has published financial information
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