27 April 2023

NESF launches capital recycling programme to accelerate the next phase of growth

NextEnergy Solar Fund, the specialist solar+ fund, has today launched a capital recycling programme (the “Programme”) to accelerate the next phase of the Company’s growth. Through the Programme, the Company aims to capture significant value from the divestment of a 236MW portfolio of subsidy-free UK solar assets, the proceeds from which will be used to:

  • Reduce gearing: materially reduce current drawings of the Company’s revolving credit facilities (“RCF”);
  • Invest in future long-term growth opportunities: provide flexibility to capture higher returning investment opportunities in the future, such as energy storage; and
  • Buyback shares: establish a share buyback in the future if the share price continues to trade at a material discount to the Company’s net asset value per share.

 NESF has pioneered investment into UK subsidy-free solar since 2017, paving the way for continued renewable investment in the UK following the withdrawal of subsidy regimes.  This effort has been crucial in attracting new investment into the sector, advancing the UK’s net zero ambitions and energy security.  These assets have created additional value throughout construction and energisation which the Board and Investment Adviser do not consider to be truly reflected in the Company’s recent share price.

 To capture the significant value of these solar assets, NESF has initiated this Programme to divest a portfolio of five subsidy-free assets (Hatherden, Whitecross, Staughton, The Grange, and South Lowfield) and has launched a sales process to find buyers for these assets, over the coming months.  The Programme will deliver Net Asset Value (“NAV”) accretive returns by realising the value generated through these investments. The Company will retain two operational subsidy-free assets and remains committed to its remaining subsidy-free solar pipeline.

There will be a short webcast this morning at 9.30am for both investors and analysts hosted by the investment adviser.  To register for the webcast please use the following link:

https://www.investormeetcompany.com/nextenergy-solar-fund-limited/register-investor