19th Apr 2016 08:30
LONDON (Alliance News) - Bluefield Solar Income Fund Ltd said Tuesday it paid GBP14.4 million for a solar plant in Derby, which provides electricity to Toyota Motor Manufacturing (UK) Ltd, with the deal boosting its energy capacity.
The fund said it acquired the 4.1 megawatt peak ground-mounted solar photovoltaic plant through purchasing solar power company Bluefield Harrier Ltd, which owns the plant. The acquisition takes its total energy capacity to 402 megawatt peak.
Bluefield Solar said the plant is connected into a car manufacturing plant in Burnaston, Derby, and benefits from a retail price index-linked 25-year feed-in tariff. Under its lease, the plant provides electricity to Toyota and derives all its revenue under the feed-in-tariff accreditation.
The acquisition has been fully funded through the amended and restated facility agreement with The Royal Bank of Scotland PLC and Investec Bank PLC, which is now drawn down for a total of around GBP180.3 million.
Bluefield Solar added that several of Bluefield Solar's subsidiary directors own shares in Bluefield Harrier and have outstanding shareholder loans to Bluefield Harrier. As such the total consideration payable to these shareholders, in relation to their shares and the loan, is GBP275,770.
Bluefield Solar also said it expects to meet or exceed its dividend of 7.07 pence per share for the current financial year, which ends June 30, and intends to raise this figure annually with retail price index thereafter. For the previous financial year, its dividend was 7.25p per share.
"With our portfolio now exceeding 400 megawatt peak, and with the proportion of total fixed revenues being approximately 99% of total revenues until the end of the current financial year in June 2016, and then in excess of 65% until the end of June 2017, our shareholders are benefiting from the company adopting a highly defensive power price strategy whilst also delivering a sector leading dividend," Chairman John Rennocks said.
Shares in Bluefield Solar were up 0.7% at 105.49 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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