Bluefield European Solar Fund eyes EUR-200m listing in London
Solar park in Spain. Featured Image: MilaCroft/Shutterstock.com
Newly-created solar investor Bluefield European Solar Fund Ltd said on Monday it plans to raise at least EUR 200 million (USD 221.4m) from an initial public offering (IPO) on the London Stock Exchange.
The Guernsey-registered closed-ended investment company will use the net proceeds to acquire and optimise solar photovoltaic (PV) assets in Eurozone countries, excluding Greece. The initial focus of the fund will fall on the Italian and Spanish solar markets. About EUR 157 million is expected to be invested in a 49-MWp portfolio of operating solar PV parks there.
The investor explained in a statement that the two key markets are established, large and mature, but the ownership of solar assets there continues to be highly fragmented, which in turn creates the opportunity for consolidation. The combined capacity of all operational solar plants in Italy and Spain exceeds 23 GWp.
Bluefield European Solar Fund targets an internal rate of return (IRR) of 7% to 9% with an annual dividend of EUR 0.06 based on an EUR-1.00 issue price for the first two years.
As per the planned IPO, the company has already secured commitments from affiliates of BlackRock Inc to subscribe for 10% of the IPO. Also, Newton Investment Management Ltd has committed to subscribe for at least EUR 20 million, but not exceeding 10% of the IPO.
Goldman Sachs International, being global coordinator and sponsor, is also a joint bookrunner in relation to the IPO alongside Numis Securities Ltd and UBS Investment Bank.
Bluefield Partners LLP acts as investment adviser for Bluefield European Solar Fund.