Foresight Solar Fund plans share issue to purchase 72 MW of UK solar
Whitley Solar Farm sheep. Source: British Solar Renewables. License: Creative Commons, Attribution-ShareAlike 2.0 Generic via flickr.
Foresight Solar Fund Ltd (LON:FSFL) said today it plans to issue shares to fund the acquisition of a 72-MW portfolio consisting of 10 ground-based solar systems in the UK.
The company has secured exclusivity over the portfolio, which it intends to acquire for about GBP 30.1 million (USD 38.7m/EUR 33.4m) from funds managed by Foresight Group LLP. The portfolio also has GBP 62.1 million of debt facilities in place.
FSFL is seeking shareholder approval to issue up to roughly 54 million ordinary shares on a non pre-emptive basis. It has already used up the authority granted by its shareholders to issue up to 10% of its issued share capital on a non pre-emptive basis. The share placing would allow the company to reduce its gearing, which was 41% as at June 30, calculated as borrowings as a percentage of gross asset value. It expects to publish soon a circular convening a general meeting.
The 10 solar facilities have been in operation for at least two years and have been accredited to receive 1.4 to 1.3 Renewable Obligation Certificates (ROCs) per MWh.
If the acquisition is completed, FSFL's solar portfolio will be comprised of 53 assets, representing 860 MW of installed capacity.