4th Jan 2022 09:18
(Alliance News) - Foresight Solar Fund Ltd on Tuesday said it gained full managerial control over the Oakley and Longreach solar farms in Queensland, Australia after it acquired the remaining 51% stake of the assets.
The Jersey-based solar-power investment company explained that it acquired a 49% stake in each farm in December 2017. It bought the other 51% from Canadian Solar Inc.
Both assets are fully operational and the full ownership provides the company with total managerial control over future optimisation initiatives.
The total equity consideration of the assets is equivalent to about 1% of the company's latest net asset value, Foresight Solar Fund added.
Both solar farms benefit from power purchase agreements with the Queensland government for the sale of electricity and large-scale generation certificates.
These are under a contract-for-difference structure for a 20 year period from the date of commissioning, delivering a highly contracted revenue level of operational cash flows, the company said.
Oakey and Longreach also have senior debt facilities from the Bank of Tokyo-Mitsubishi Ltd and the Clean Energy Finance Corp in place that will expire in April and are expected to be refinanced in the first quarter of this year.
"This acquisition further strengthens the company's international portfolio, while the highly contracted revenue profile of the assets will increase the predictability of the company's portfolio cash flow generation in the medium and long-term," Foresight Solar Fund said.
Shares in the company were up 0.5% at 101.89 pence each on Tuesday morning in London.
By Abby Amoakuh; [email protected]
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