NextEnergy Capital raises USD 232m more for NextPower III solar fund
Solar in North Carolina. Image by NextEnergy Capital Group.
London-based NextEnergy Capital Group today announced that investors have committed a further USD 232 million (EUR 195m) to its NextPower III solar fund, bringing its capital to USD 530 million.
The fund, due to close at the end of 2021, targets raising USD 750 million and has a hard cap of USD 1 billion. It is focused on selected OECD (Organisation for Economic Co-operation and Development) countries, among which the US, Portugal, Spain, Chile and Italy.
The new commitments include a German occupational pension fund, Derigo Gmbh&Co.KG and a UK institutional investor, the firm said.
NextEnergy Solar Fund Ltd (LON:NESF) announced separately it has committed USD 50 million to NextPower III, which currently owns a 394-MW portfolio, of which 245 MW are operational. The fund also has a pipeline of around 1.6 GW, including 453 MW under exclusivity across Portugal, Chile, Poland and Spain.
NextEnergy Capital manages the NextPower III ESG and NextPower II private funds and the listed NESF.
"NESF's investment into NPIII is an exciting opportunity to immediately add international diversification, incremental growth and an attractive return profile to our portfolio," said NESF chairman Kevin Lyon. The move in addition provides NESF with co-investment opportunities as it can take direct stakes in assets sourced by NextPower III.
NESF also said it has agreed a revolving credit facility of GBP 100 million (USD 139m/EUR 117m), including a GBP-25-million accordion, with NatWest and AIB. This means the company now has GBP 165 million of revolving credit facilities, excluding the accordion, of which a GBP-54-million portion is drawn.