SECOND BINDING ACQUISITION AGREEMENT

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10 December 2019

US SOLAR FUND PLC (USF, the "Company") 

SECOND BINDING ACQUISITION AGREEMENT

USF TO ACQUIRE A 39 MWDC SOLAR PORTFOLIO IN NORTH CAROLINA WITH POWER PURCHASE AGREEMENTS TO SEPTEMBER 2033

US Solar Fund plc (LON: USF (USD)/USFP (GBP)) is pleased to announce its second acquisition. Further to the announcement on 18 June 2019, USF has now executed binding agreements with a subsidiary of Cypress Creek Renewables (Cypress Creek) to acquire a 39MWDC portfolio of six utility-scale solar power projects located in North Carolina (the Portfolio). Although the initial exclusivity arrangement contemplated the acquisition of approximately 90MWDC, USF will acquire a smaller subset of six projects totaling 39MWDC that meet its investment strategy and timing requirements.

Each project in the Portfolio has executed a power purchase agreement (PPA) with subsidiaries of Duke Energy (S&P rating: A-) with a weighted average term of 13.2 years. The PPAs set fixed prices for 100% of the electricity produced by the Portfolio until expiry.

USF's acquisition is expected to be completed in December 2019, simultaneous with tax equity financing and the commencement of construction. The projects will be constructed on a fixed-time and fixed-cost basis by Horne Brothers Construction, a North Carolina-based solar installer which has successfully completed over 900MW of solar construction. Construction of all projects in the Portfolio is expected to be complete in the second half of 2020. Cypress Creek will provide operations and maintenance services to the Portfolio.

USF intends to fund the acquisition and construction of the Portfolio with cash of approximately US$35m and does not anticipate using debt at this time. USF may consider raising debt against the Portfolio during construction or once it is operational. The expected returns from the Portfolio are in line with those anticipated in the Company's investment objective, as set out in its prospectus dated 26 February 2019.

Liam Thomas, Chief Investment Officer of USF's investment manager New Energy Solar Manager, said:

"Construction of this portfolio of 39MW will begin immediately. Since our IPO 8 months ago we've agreed to purchase more than 160 MW of solar power projects on behalf of US Solar Fund and its investors."

"All have fixed price power purchase agreements, for an average of 13.2 years. In determining which pipeline projects ultimately proceed to acquisition, we carefully consider the balance between our investment objectives and our investors' wish to have IPO proceeds fully committed and invested as swiftly as possible."

USF continues to progress other opportunities from its pipeline and expects to announce further investments in due course.

For further information, please contact:

About US Solar Fund plc

US Solar Fund plc listed on the premium segment of the London Stock Exchange in April 2019, following its successful US$200m IPO. The Company's investment objective is to provide investors with attractive and sustainable dividends with an element of capital growth by investing in a diversified portfolio of solar power assets in North America and other OECD countries in the Americas.

The Company will acquire or construct, own and operate solar power assets that are expected to have an asset life of at least 30 years and generate stable and uncorrelated cashflows by selling electricity to creditworthy offtakers under long-term power purchase agreements (or PPAs).

Further information on the Company can be found on its website at http://www.ussolarfund.co.uk.

About the Investment Manager

USF is managed by New Energy Solar Manager (NESM). NESM also manages New Energy Solar, an Australian Securities Exchange (ASX)-listed fund which has committed over US$900m to US and Australian solar plants since late 2015.

NESM is owned by Walsh & Company, the funds management division of Evans Dixon, an ASX-listed company (ASX: ED1) with over A$20 billion of funds under advice and management.