22nd Jun 2021 10:41
(Alliance News) - NextEnergy Solar Fund Ltd on Tuesday said it agreed a new revolving credit facility and committed USD50 million to a private fund with the same investment manager.
The firm, which invests in UK solar assets, agreed the USD100 million, three-year revolving credit facity on "attractive terms" with NatWest Group PLC and AIB Group PLC. It is formed of a USD75 million committed loan and a USD25 million accordion.
Shares were up 1.7% to 99.30 pence in London.
The deal increases NESF's overall revolving facilities to GBP165 million, not including the accordion, the company said. GBP54 million is currently drawn. The new financing will allow NESF to progress its investment strategy.
NESF also announced it committed USD50 million to NextPower III LP, a private fund established to invest in solar projects in OECD countries. Both NESF and NextPower III are managed by NextEnergy Capital Ltd.
NextPower III was established in November 2018 and has a solar asset portfolio of 394 megawatts.
The deal will provide additional co-investment opportunities for the two companies, in which NESF buys stakes in targets sourced by NextPower III.
"NESF's investment into NPIII is an exciting opportunity to immediately add international diversification, incremental growth and an attractive return profile to our portfolio....The board believes the new RCF to fund this commitment and further investments is the most cost-efficient funding strategy," NESF Chair Kevin Lyon said.
By Ivan Edwards; [email protected]
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