27th Apr 2023 14:28
(Alliance News) - NextEnergy Solar Fund Ltd on Thursday launched a capital recycling programme, selling its solar assets to reduce debt, and to establish future share buybacks and investment in higher returning opportunities.
NextEnergy is a Guernsey-headquartered specialist solar fund with interests in energy infrastructure and complementary technology assets. It said on Thursday is divesting a 236 megawatt portfolio of subsidy-free UK solar assets.
NextEnergy said proceeds from the divestment will be used to reduce gearing, and to allow for future share buybacks if its share price continues trading at a material discount to its net asset value per share.
NextEnergy said the sale also will allow it to invest in future long-term growth opportunities such as value-accretive energy storage.
It has exclusivity over or owns project rights for the majority of its approximate GBP500 million UK pipeline and international assets, including for a high-quality 250MW lithium-ion battery storage project currently under construction in the East of England.
Founder & Chief Executive Officer Michael Bonte-Friedheim commented: "Today's announcement sets out a structured programme for NESF to benefit from active management of its portfolio, free up capital, increase shareholder value, and position the company for its next wave of growth.
"NextEnergy Capital has added significant value to NESF through its investments in subsidy-free solar. A successful sale process will further demonstrate the value delivered through these assets and provide an attractive return to the Company based on recent examples seen in the secondary market. We look forward to updating shareholders on the progress of the programme in due course."
Shares in NextEnergy were up 1.5% in London on Thursday at 108.40 pence.
By Emma Curzon, Alliance News reporter
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